A boat carrying fuel caught fire between islands in Indonesia.

The Sarana Perkasa ship was delivering 35 tonnes of fuel when it reportedly struck a reef in shallow waters off the Banda Neira Volcano Island in Central Maluku.

Dramatic footage shows dark smoke plumes billowing from the burning vessel as it sank in the Banda Sea on Thursday morning.

Eight crew members were rescued and safely evacuated to nearby islands.

Authorities said the Perkasa Sarana had initially departed from Ima Marina Port in Masohi City. It was bound for Banda Neira but sprang a leak when it crashed into a reef.

Muhamad Arafah, head of the Ambon National Search and Rescue Agency, said: 'During the process of draining the water, a spark occurred, causing the massive fire. The fire is suspected to have originated from the Alkon pump. The entire crew was safely evacuated to Banda Neira Island and Hatta Island.'

Local police chief AKP Kasim Rahayamtel said: 'While they were evacuating the fuel cargo, a fire suddenly broke out. It started from the engine used in the process, and soon the entire ship, along with its fuel load, was engulfed in flames.'

The incident occurred just a day after 10 people were killed and 18 were injured in an oil tanker fire in Indonesia's Riau Islands province.

The MT Federal II caught fire while being repaired at a shipyard in Batam early morning on Wednesday.

Police said the cause was under investigation as the ship was not carrying fuel at the time.

Indonesia, an archipelagic nation, relies heavily on boats and ferries to connect its network of more than 17,000 islands. However, maritime accidents frequently occur due to poor maintenance, bad weather, overloading, and other safety issues.