A baby boy is dead and eight people are missing after a boat carrying asylum seekers from Indonesia to Australia began sinking in the Indian Ocean.

Australian Home Affairs Minister Jason Clare said on Saturday that officials rescued 88 asylum seekers after the boat began taking on water on Friday about 200 kilometres north of Christmas Island. The island is an Australian territory 500km south of Jakarta, Indonesia, and is home to a detention centre for asylum seekers.

The boat was carrying people from Iran, Afghanistan and Sri Lanka. Officials recovered the body of a baby boy who was less than 1 year old. The navy is searching the waters for 8 people who remain missing.