The fire began at dawn on the ground floor of Pasar Senen market, a sprawling complex of stalls on several levels that was built during Dutch colonial rule.
Fifty fire engines were deployed to battle the blaze, which was still going strong in the afternoon. Several people suffered from minor burns.
It was not clear what caused the fire in the market, which is in central Jakarta and sells goods ranging from textiles to food.
"My shop is inside. It's all gone, finished, nothing left," shopkeeper Edwin, who only gave his first name, told AFP.
Pasar Senen -- which translates as "Monday market" -- has been hit by several big fires in the past.