A rescue team has been called into action after a helicopter spotted the wreckage of the Russian plane which went missing on Wednesday.
The debris was seen on the side of a cliff near a dormant volcano. Its understood around 50 people, Indonesian businessmen, Russian officials and journalists were on board. Their fate is unknown.
The Sukhoi Superjet 100 took off on a demonstration flight from Jakarta, its second of the day and vanished from radar screens 50 minutes later.
As teams prepared to go to the site of the wreckage the Indonesian President Susilo Bambang Yudhyono went on television to say an investigation would be launched immediately while finding any survivors was a priority.
Officials from Sukhoi have been on an Asia wide tour to show off the plane to potential buyers. The mid range aircraft which can carry up to 100 people is the first commercial one to be made by the company which specialises in military planes.
The Super jet was developed with Italian and French help. It was first unveiled in 2007 but ran into a series of development delays.