At least 15 people were killed after a wooden ferry sank off the coast of Indonesia's Sulawesi island, search and rescue officials said, adding that all missing passengers had been accounted for.

The boat sank with more than 40 people onboard just after midnight local time (1700 GMT on Sunday), the local office of Indonesia's search and rescue agency said in a statement on Monday.

Six people were rescued and taken to hospital for treatment, and the cause of the sinking was being investigated, it said.

Muhamad Arafah, head of the local search and rescue agency in Kendari city in Southeast Sulawesi, said in the statement that the 27 other passengers had been accounted for and all the victims had been identified.

The agency had said earlier that 19 were missing, but Arafah said the search operation had now been "declared finished and closed".

One search team will dive around the accident site, while another will search the water's surface using boats, he said.

The ferry was crossing from Lanto village on Buton island to Lagili village on Muna island in Southeast Sulawesi, the agency said.

It shared images of rescuers mobilising for the search effort, and several dead bodies covered by sarongs laid on tarpaulin at a local hospital.

It is common in Indonesia for the number of actual passengers on a boat to differ from the manifest.

Marine accidents occur frequently in the Southeast Asian archipelago nation of around 17,000 islands, where people rely on ferries and small boats to travel around despite poor safety standards.

In 2018, more than 150 people drowned when a ferry sank in one of the world's deepest lakes on Sumatra island.

In May last year, a ferry carrying more than 800 people ran aground in shallow waters off East Nusa Tenggara province and remained stuck for two days before being dislodged.

No one was hurt in that accident.