A passenger ferry carrying hundreds of people caught fire at sea off Sulawesi island in Indonesia, killing at least five people.

More than 280 people were rescued and evacuation efforts were ongoing after the fire erupted on Sunday.

The KM Barcelona 5 was headed to Manado, the capital of North Sulawesi province, from Talaud, an island district in the province when it caught fire in waters near Talise, said Vice Admiral Denih Hendrata, commander of the Indonesian Fleet Command.

In this photo made from video released by the Indonesian National Search and Rescue Agency, a rescue ship approaches the ferry after it caught fire in the waters off Talise Island in North Sulawesi. (AP)

He said three navy ships had been deployed, and 284 passengers and crew members had been evacuated so far.

The rescue operation included assistance from local fishermen, who saved some survivors wearing life jackets as they were drifting to nearby islands in the choppy waters.

Rescuers retrieved five bodies, including a pregnant woman.

There were no immediate reports of injuries, and no exact figures of passengers and crew members onboard the ferry.

“We are still focusing on evacuation efforts,” Hendrata said, adding that the cause of the fire was being investigated.

Photos and videos released by the National Search and Rescue Agency showed terrified passengers, mostly wearing life jackets, jumping into the sea. Orange flames and black smoke billowed from the burning vessel.

At least five people were killed in the tragedy. (AP)

Indonesia is an archipelago of more than 17,000 islands where ferries are a common method of travel. Disasters occur regularly, with weak safety enforcement often blamed.

Residents of Mentawai Islands found several people stranded on July 14 after a speedboat carrying 18 people capsized during a storm the day before, authorities said. All were in good condition.

A ferry sank near Indonesia’s resort island of Bali early this month, leaving at least 19 dead and 16 others missing. A two-week search operation involved more than 1,000 rescuers, three navy ships, 15 boats, a helicopter and divers.