A senior Indonesian police source said that they have arrested a man called Akram, who is also known as Rosen, in Bogor, south of Jakarta.
Police suspect he organised a boat which sank off Cidaun on the south-west coast of Java in July.
There were more than 210 people on board, and 189 people survived.
Police have also completed their case against another people-smuggling boss called Jawed Muhmud, or Bilu, who is thought to be linked to four boats, including one which sank in June last year killing about 100 people.
Prosecutors will now take the case to court.
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