A boat with over 100 passengers is believed to have sunk in rough seas off the coast of Indonesia.

According to AFP, Transport ministry spokesman J.A. Barata confirmed there were 118 people on board the ferry, including 19 children and 10 crew, when it left Kolaka in southeast Sulawesi this morning.

A distress signal was sent in the afternoon, claiming the vessel had an accident after encountering waves four and five metres in height.

Indonesia's search and rescue agency and navy have been notified of the incident, said Barata, but he gave no indication if teams had been sent to the scene to locate passengers.