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The Boeing 737-400 was carrying an undetermined number of Australian journalists and diplomatic staff who were in Indonesia with the country's foreign minister, said Australian Treasurer Peter Costello. The foreign minister was reportedly not on the plane.
"I saw at least eight corpses piled up at the front of the plane," said Capt. Yos Biantoro, who was at the scene of the fire at Yogyakarta airport in central Java.
The state-owned Garuda airline, which operated the Boeing 737-400, confirmed that 118 people had survived.
Survivors described how they scrambled through emergency doors moments before fire raced through the cabin.
Investigators have found the plane's flight data recorders which may be sent to Australia or the US for examination.
Indonesia's president has announced an investigation into the crash 440km (270 miles) south-east of Jakarta.
Preliminary investigation results indicate that the plane landed fast with the flaps not selected correcly for landing.
The Garuda Indonesia Boeing 737-400 that crashed at Yogyakarta airport last month made its final approach well above the glideslope, touched down considerably faster than the normal landing speed, and did not have its flaps set in a typical landing configuration.
Chief investigator Mardjono Siswosuwarno says the aircraft touched down on Yogyakarta airport's runway 09 at a "much higher than normal speed". Although he says "we still need to verify the figure", local reports say it was between 210kt (389km/h) and 220kt, instead of the typical 140kt for a 737-400 landing.
Mardjono also says the aircraft was "quite high above the glideslope" on final approach and its flaps were only set at 5° on touchdown, rather than the typical 30-40°. As a result of the high speed and a steep descent the aircraft touched down hard on the runway and its nose-gear axle broke on landing. It then skidded off the runway into a paddy field where it burst into flames. He says the information is contained in the National Transportation Safety Commission's preliminary factual report into the 7 March crash, which killed 21 of the 140 people on board.