Indonesian authorities will call off a two-day search for victims on Thursday after a military transport plane crashed into a residential area in Sumatra, killing around 140 people, The Economic Times quoted the military as saying.

The Hercules C-130B was carrying 122 passengers when it crashed into houses in the northern city of Medan shortly after takeoff on Tuesday, killing all on board and more on the ground.

"We have not found any bodies since yesterday, so hopefully, we will be able to finish the search-and-rescue operation today," military spokesman Fuad Basya said.

Basya said 135 people were confirmed dead, although Indonesian media reported on Thursday at least 141 bodies had been recovered from the crash site.