A fire which destroyed an Indonesian petrochemical plant, killed two people and caused tens of millions of dollars in damage, officials said.

Police had earlier put the death toll as rising to four after the blaze at the Petro Widada complex in the town of Gresik in East Java.

But Dr Iswando, of the Dr Sutomo Hospital in Surabaya, later told AFP that two victims whom police thought had died remained in critical condition at the hospital. They were among five critically hurt victims, he said.

Sudibyo, chief of the Gresik police criminal investigation bureau, said about 50 officers were examining the scene and searching for any additional victims.

He said the plant was "99 percent" destroyed in the blaze, which appeared to be accidental.

An executive of the insurance firm Tugu Pratama told Indosiar television the company had prepared for a payout in the tens of millions of dollars.

"So far, after making summary checks, we have an exposure of some 75 million dollars in the area," said the executive, Muhaimin Iqbal.

Dedi Mawardi, a spokesman for state-owned Petrokimia Gresik which has a minority stake in Petro Widada, said the blaze destroyed two plants. A third newly-built plant had not yet been brought into production, he said.

Sudibyo said 48 people were injured. Police reports immediately after the fire broke out cited 68 injured but further checks with hospitals showed the number to be lower, he said.

The cause of the fire remained under investigation but there was no sign of criminal activity, Sudibyo said.

Indonesia's top detective, Erwin Mappaseng, said the blaze was ignited by "a leak" and initial investigations point to an accident.

Sudibyo said a machine at the plant overheated Tuesday, leading to the fire which Haji Samsi, the production manager, asked an employee to extinguish with water.

But the fire spread, killing Samsi as it engulfed the compound and sent huge clouds of dark grey smoke billowing across the surrounding residential area.

Some residents fled their homes but returned after the fire was extinguished at 11:30 pm (1630 GMT) Tuesday, about eight hours after it began. East Java police chief, Inspector General Firman Gani, said the plant's alarm system had failed to function properly.

"We will seek who has to bear the responsibility, why the alarm system did not function or whether the alarm system exists but was not used or cannot be used," Gani told reporters.

He said police would also check whether the company provided adequate fire drills and training for its workers at the plant, which made phthalic anhydride and maleic anhydride for use in making plastics.

Petro Widada is a joint venture between six companies, with Royal Petrochemie and Eterindo Wahanatama holding the largest percentage of shares.

The Jakarta Stock Exchange suspended trading of Eterindo Wahanatama shares Wednesday following the fire. It asked Eterindo to disclose the impact of the fire on its operational and financial performance.