An Indonesian plane that disappeared when flying in bad weather and crashed into a mountain was carrying more than $600,000AUD in cash.

Weather has continued to hamper search efforts for the plane – which will resume today – with loved ones of those on board the flight from Papua’s capital Jayapura to Oksibil still without confirmation of their fates.

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The ATR 42-300 twin-turboprop plane disappeared on Sunday with 49 passengers and five crew on board, with a search plane spotting smouldering debris in the mountains near Oksibil, the intended destination of the aircraft.

Transported on the flight by post office officials was also 6.5 billion rupiah – about $637,100 in cash – intended to be distributed to poor families as social assistance.

“They were carrying those bags (of cash) to be handed out to poor people in Oksibil through a post office there,” Jayapura post office head Haryono told The Associated Press.

It was villagers at the near-by Okbape village in Papua’s Bintang district who sighted the plane flying low before crashing into a mountain.

“Smoke was still billowing from the wreckage when it was spotted by a plane search,” Papua’s search and rescue agency head Soelistyo told news.com.au, who is leading the rescue operation from Sentani Airport in Jayapura.

But thick fog, which reduced visibility to one metre, and rain hampered efforts to find the plane, news.com.au reported.

Photos of the suspected site show dense forest, broken by a blackened clearing strewn with debris.

The fate of those on board is yet to be officially confirmed, but officials have said chance of survival was “very slim”.

Foreign Minister Julie Bishop has offered Australian assistance, with officials now in discussions on the best way forward.