The flames spread around 7:15 local time when the ship, which covered the route between Ternate and Sanana, was about nine kilometers northwest of the island of Lifamatola, in the central region of the Indonesian archipelago.
Indonesian rescue teams managed to evacuate passengers and crew onboard a ferry on Saturday. A large fire was registered, the emergency service reported.
The flames began around 7:15 local time (22:15 GMT on Friday) when the ship, which covered the route between Ternate and Sanana, was about nine kilometers northwest of the island of Lifamatola, in the central region. of the Indonesian archipelago.
The director in Ternate of the Indonesian search and rescue agency (BASARNA), Muhamad Arafah, indicated that all the people have survived the incident and that they are already on land after an operation by sea and air.
In the images released by the agency, dozens of people with life jackets can be seen jumping into the water from the boat, which was carrying 181 passengers -including 22 children- and 14 crew members, to get on rescue rafts, while the flames consumed the Stern.
The emergency teams are now studying how to transfer the wrecked ship, which has not sunk, to the nearest port.
Authorities are still investigating the cause of the crash. Survivors said the fire apparently started in the engine room about 15 minutes after the ship left.
These accidents are common in Indonesia, the world's largest peninsula, with more than 17,000 islands. Many of these episodes are attributed to poor regulation of boat services.
The fire recalled that just over a month ago, the Indonesian authorities confirmed that the submarine that had disappeared off the coast of Bali with 53 people on board was wrecked after having found remains of the device.
The Navy estimated that the crew had oxygen to survive 72 hours in the event of a power failure. That period ended on April 24, making it unlikely that there would be survivors.
In addition, in the area where the submarine was wrecked, an oil slick was detected, which suggested that the tank broke; that is, there was a technical problem with the device.