A MASSIVE inferno has erupted on a packed ferry forcing passengers to jump overboard – with dozens feared trapped.

Flames engulfed the KM Barcelona VA vessel on Sunday, forcing many of the 280 terrified passengers to hurl themselves into the ocean.

Indonesian media reports say the blaze broke out at around 1.30pm local time.

Panic erupted onboard when thick black smoke began billowing from the lower decks, Benuanews.com, reported.

Harrowing footage showed passengers leaping into the water, many of them clad in bright orange life jackets, as the blaze ripped through the ship.

In several videos shared across social media, the screams and desperate cries for help from passengers echo as chaos unfolds.

The sky above is darkened by smoke as the vessel burned from the hull up.

“There are KM Barcelona III, KM Venecian, and KM Cantika Lestari 9F,” a Manado KSOP officer confirmed, naming the three rescue ships dispatched to the scene to help evacuate survivors.

Rescue operations are ongoing as emergency teams race against time to account for all passengers.

The ferry was en route from the Talaud Islands to Manado City when it caught fire off the coast of North Sulawesi.

It was nearing Talise Island in North Minahasa Regency when thick black smoke began pouring from the vessel and flames shot into the sky.

The ferry had been scheduled to dock at Manado Port before disaster struck, local outlet IDN Times reports.

At this stage, authorities have not confirmed any casualties.

The cause of the fire remains unknown.