The captain and two crew-members of a Malaysian-owned ship who were kidnapped by armed pirates in Indonesian waters, have been released unharmed, said media reports today.

The three Indonesians were released after a ransom was paid to the kidnappers, Marine police commander Mohamad Muda was quoted as saying by the official Bernama news agency.

"The three hostages were released after ransom was paid through a middleman," he said. He did not reveal the amount paid.