Terrified passengers leapt into the river after a coal barge struck a wooden boat taxi, leaving three people missing.

The small passenger boat was carrying 40 people when its engine failed while crossing the Barito River in Central Kalimantan, Indonesia, on July 8.

Reports said it stalled midstream and was swept by the current into the path of the tugboat Mirsad, which was towing a barge loaded with coal.

Aipto Prabowo, a representative of the company operating the tugboat, said: 'We were en route to the Kelanis area when it happened around the Santuyun bend. The collision was unavoidable.'

Passengers panicked and jumped into the water moments before the wooden vessel was destroyed on impact and sank.

Terrifying footage shows the moment the barge collided with the watercraft.

Witnesses said several individuals were pulled under the freighter by strong currents.

Anang Gumelar, head of the local disaster management agency's operations control centre, said at least three people remained missing.

Nearby residents rushed to assist in rescuing survivors.

Boat taxis, known locally as kelotok, are a common means of river transport in Kalimantan province, where waterways connect remote communities in the largely forested region.