Terrified passengers were evacuated when a bus caught fire in Indonesia.

Footage shows the coach engulfed in flames as firefighters battled to contain the blaze in Madura, East Java, on Sunday, June 1, around 12:30 pm.

The vehicle was driven by Agus Salim, 60, travelling from Madura to Jakarta with three passengers on board. It caught fire while passing through Jalan Raya Galis in Paterongan Village.

Moments before the blaze intensified, a loud explosion was reportedly heard from the rear engine of the bus.

Assistant Commissioner of Police Diyon Fitrianto, Head of the Bangkalan Police Traffic Unit, said: 'The driver immediately stopped the vehicle and checked behind. That's when the fire was seen burning the engine.'

All commuters were safely evacuated and transferred to a replacement vehicle without injury.

Police noted that quick action by the driver and conductor prevented any casualties, although the bus sustained significant damage.

An investigation into the exact cause of the fire is currently underway.