Indonesia ferry fire kills five as hundreds rescued.

KM Barcelona 5 ferry after a fire broke out while on its way to Manado, the capital of North Sulawesi province.[AFP]

An Indonesian ferry fire killed at least five people on Sunday, the country's coast guard said, while more than 200 others were saved with many jumping overboard to flee the huge blaze.

The KM Barcelona 5 ferry was engulfed in flames off the coast of Sulawesi island, Indonesia's Maritime Security Agency said, just weeks after at least 19 people were killed when a ferry sank off the popular resort island of Bali.

"Five people were reported dead, two of whom have yet to be identified. Meanwhile, 284 people have been evacuated safely," the agency, also known as Bakamla, said in a statement.

The fire broke out at the ferry's stern as it was on its way to Manado, the capital of North Sulawesi province, with some passengers jumping overboard with life jackets, the statement said.

Fishermen also helped evacuate the victims to nearby islands, the statement added. 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.

Marine accidents are a regular occurrence in the Southeast Asian archipelago of around 17,000 islands, in part due to lax safety standards or bad weather.

The ferry sinking en route to Bali this month was attributed to bad weather.

In March, a boat carrying 16 people capsized in rough waters off Bali, killing an Australian woman and injuring at least one other person.

In 2018, more than 150 people drowned when a ferry sank in one of the world's deepest lakes on Sumatra island.