Forty people were treated for injuries including broken legs, head wounds and shock, though only four were admitted to hospital, hospital officials said.
The brand new aircraft had flown from Bandung, in West Java, was about to land atBali airport. "But it probably failed to reach the runway and fell into the sea," saidLion Air spokesman Edward Sirait.
He said there were 101 passengers and seven crew on board but would not comment on the cause of the crash. An investigation is under way.
Bali's police chief told local television that there were two foreign passengers.
"There was no sign at all it would fall but then suddenly it dropped into the water," passenger Tantri Widiastuti, 60, told Metro TV. "I saw holes in the floor of the plane ... we were evacuated quickly."