Two Indonesian soldiers and a boy aged six have been injured in Indonesia's Aceh province, hours after the government set terms for renewed peace talks with separatist rebels.

A grenade fired from a launcher exploded near two soldiers who were relaxing in the center of Bireuen town late Monday, an Aceh military spokesman, Dasli Averos, said Tuesday.

The grenade injured the two soldiers and a nearby child, he said, blaming the separatist Free Aceh Movement (GAM). One soldier was seriously injured while the other two victims were only slightly hurt. A local GAM spokesman, Teungku Zarkara, denied his members were responsible.