Fifteen people were taken to hospital after the crash, which involved an Indonesian Lion Air plane carrying 101 passengers and seven crew.
Photos posted on Twitter show a jet with a cracked fuselage sitting in water near rocks, with dinghies nearby.
The Boeing 737 was on a domestic flight from Bandung in West Java.
It missed the runway by about 50m (yards) and landed in the ocean nearby.
"The aircraft was in landing position when suddenly I saw it getting closer to the sea, and finally it hit the water," Dewi, a passenger who sustained head wounds in the crash, told the Associated Press news agency.
"All of the passengers were screaming in panic in fear they would drown. I left behind my belongings and went to an emergency door. I got out of the plane and swam before rescuers jumped in to help me."
No-one appears to have life-threatening injuries.
Light rain was falling at the time of the crash, which occurred at around 15:00 (07:00 GMT).
A transport ministry official told that it was too early to say what the cause of the crash had been.
The discount airline Lion Air, Indonesia's biggest commercial carrier, has been expanding rapidly in recent years.
Bali is one of Indonesia's top holiday destinations, popular with foreign tourists.
Source: BBC 4/13/2013
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