Fishermen also helped evacuate the victims to nearby islands, while those injured were taken to the nearest health facility, Bakamla added.
The accident happened about one hour away from the resort town of Likupang, in the northern tip of Sulawesi, Manado search and rescue agency head, George Leo Mercy Randang, told AFP.
A video released by the Manado agency showed a Bakamla vessel spraying water on the ferry, which was still emitting thin black smoke.
“What is important is that we are prioritising rescue before nightfall,” George told AFP, without confirming the total number of people who were on board the ferry.
Neither he nor Bakamla gave a cause for the fire.
Videos of the vessel fire went viral on TikTok, with some reportedly taken by passengers who had jumped aboard for safety.
Thick plumes of black smoke could be seen in the background as passengers floated in the water. In another clip posted on Tiktok by user Soalunsrat, passengers on the vessel were seen hurriedly putting on life vests even as others were seen panicking and attempting to make calls on their mobile phones.
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