This is the spectacular moment a stunning halo appeared above homes in Indonesia.

Residents spotted the circular rainbow-like phenomenon in the clear blue sky over Batam, Riau Islands Province, on Monday, August 25, at around 10 am.

Ramlan Djambak, head of the Meteorology, Climatology and Geophysics Agency (BMKG) at Hang Nadim Batam Meteorological Station, said: 'The halo phenomenon occurs when sunlight is reflected and refracted by thin cirrus clouds.'

Cirrus clouds are high-altitude clouds made of ice crystals that can bend light under certain conditions.

Djambak said that the effect is similar to the way dew reflects light in the morning.

He added: 'If the cirrus clouds are evenly spread, the halo will appear clearly. But if the clouds are thick and hold a lot of water vapour, the circular outline will be blocked.'

The spectacle was visible across Batam and possibly in nearby areas, including Tanjungpinang and Bintan.