This is the dramatic moment an Australian couple were rescued when their yacht ran aground on an island in Indonesia.

Peter Watt, 63, and Catherine Delves, 61, were sailing from Balie towards Borneo to see orangutans when their 26-tonne yacht was battered by large waves, on January 29.

The vessel's engine failed and it was beached on a reef near Gili Iyang island in East Java.

The couple had sent out distress calls, but eventually jumped overboard into the shallows when their calls went unanswered. Wearing life jackets, they braved the rough sea to swim to shore.

Footage shows villagers assisting the Australians seen drenched in seawater. In the distance was their tilted yacht being battered by swells.

The couple were taking shelter in a local fisherman's home, where they were given clean clothes, food, and drink.

A grateful Peter said: 'A few of the locals swam out halfway to help us as well. They went beyond what you'd expect — they were just so helpful.'

A resident named Hariyanto said he helped the pair onto dry land.

He added: 'I offered them food. I asked if they wanted something like this—just rice and fish. They accepted.

'The yacht is now tilted on the rocks, and it's difficult to tow back to the sea because it's heavy. To pull it, a lot of effort is needed, and we have to wait for the tide to come in so it can float again and then be directed back to the sea.'

The couple said they could be stranded 'for another month' on the island as they arranged for their yacht to be towed from the rocks. It also suffered a fracture on the bottom hull which would need to be repaired.

Catherine said: 'We've got a lot of people on the case, but things don't move very quickly.'

The Department of Foreign Affairs and Trade also confirmed it was providing assistance to an Australian couple in Indonesia.