There were 12 crew and 101 passengers on the Hercules C-130 when it went down and burst into flames in a residential area of Medan city, Indonesian air force chief Agus Supriatna told AFP, Censor.NET reports citing i24news.
Asked if he believed anyone had survived, he said: "No, no. No survivors. I just returned from the site." He said that 49 bodies had so far been recovered and taken to hospital.
Buildings were left in ruins and cars reduced to flaming wrecks after the plane came down in Medan, a city of two million.
Buildings near the crash zone were severely damaged and cars were reduced to flaming wrecks when the Hercules C-130 with 12 crew members on board came down in Medan, a city of two million on the island of Sumatra.
A major rescue operation swung into action, with ambulances ferrying bodies from the accident site, and crowds of anxious residents gathering around a police cordon to get a look.
Local media reported that the crew of the plane, which had been transporting military supplies to airbases, consisted of three pilots, one navigator and eight technicians.
The crash was in a newly built residential area and officials said it was unclear how many people were in the buildings at the time of the accident.
"The bodies have been crushed by debris of the buildings and the fuselage," said local police chief Mardiaz Dwihananto, adding they were being ferried one by one to hospital.
Military spokesman Fuad Basya said the plane took off at 12:08 pm (0508 GMT) from an air force base and crashed in the city about two minutes later, about five kilometers (three miles) from the base.
It was the second time in a decade that Medan had suffered a fatal plane accident. A Mandala Airlines domestic flight crashed shortly after takeoff in 2005 into a densely populated suburb, killing at least 150 including passengers, crew and people on the ground.
Medan is the biggest Indonesian city outside the main island of Java and a major economic center.