Witnesses said the fire started on the second floor of the three-storey building at about 1:00 am local time on Sunday.
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32 others were taken to hospital when the flames ripped through the crowded club in Manado on Sulawesi Island.
He said a few panicked people smashed windows and fled into the street while many others were stuck in choking black smoke.
Police Chief Col. Rio Permana said workers were unable to douse the blaze with fire extinguishers.
A police spokesman said authorities were still investigating the cause of the fire, adding that a preliminary investigation indicated it may have been sparked by a short circuit.
“So far, we have found there was no emergency staircase – only one common staircase to access every floor”, he said. Most died from smoke inhalation injuries rather than burns.
He said “dozens” were injured but Indonesian Red Cross official Mahmud Paputungan estimated the number wounded to be around 70.
Most of the dead – apparently killed due to smoke inhalation – have been identified.
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There were complaints that fire apparatus took an hour to arrive and firefighters spent several hours to bring the blaze under control.
