Indonesian media say more than 160 people were on the Airbus A320-200. The flight had been due to arrive in Singapore at 08: 30 (00: 30GMT). There were six foreigners on board the flight, reports say, three from South Korea and one each from the UK Malaysia and Singapore.
An official with the transport ministry, Hadi Mustofa, told local media the plane lost contact over the Java Sea, between the islands of Kalimantan and Java.
He said the plane had asked for an unusual route before it lost contact and that the weather had been cloudy.
AirAsia have given few other details.
“At the present time we unfortunately have no further information regarding the status of the passengers and crew members on board, but we will keep all parties informed as more information becomes available,” a company statement said.
AirAsia has set up an emergency line for family or friends of those who may be on board. The number is +622 129 850 801.