Passengers on board the fast boat included Korean, British, French, and German citizens.
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The British embassy in Jakarta said it was providing assistance to British nationals affected by the explosion.
The injured were taken to hospitals in Bali.
The police say they believe the blast was an accident and ruled out the possibility of a terrorist attack.
The boat was carrying tourists from the east of the Indonesian island to the neighbouring Gili Islands when the explosion happened, according to reports.
ABC’s Adam Harvey said that pictures showed one of the survivors was “very badly injured”.
‘There are many victims injured, mostly foreigners, ‘ Mr Sudarso said. Police had initially said that she was German.
“One female passenger died from head injuries”.
“We confirm there was no bomb on board”, Sugeng said.
The Gili Cat are high-speed boats which takes tourists from the Bali mainland to the Gili islands.
Police are understood to be questioning the boat’s captain. “Five minutes after the boat departed, only around 200 meters from the harbor, smoke was seen coming from the boat, then an explosion was heard”, Karangasem Police chief Adj. Sr.
While details are sketchy some media are saying the cause may have been caused by a ruptured fuel tank.
According to Agence-France Presse (AFP), a blast in the speedboat’s engine occurred shortly after it set sail from the popular holiday island.
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Previous year dozens of tourists were injured in small explosions on board another ferry travelling between Bali and Lombok. There were 35 foreign tourists on board, a police spokesperson confirmed.
