About 180 were also hurt in the crush after home team Arema FC lost to bitter rivals at the overcrowded stadium late on Saturday in Malang, East Java.
The stampede took place after police tear-gassed fans who invaded the pitch.
As panic spread, thousands surged towards Kanjuruhan stadium’s exits, where many suffocated.
One eyewitness, named as Dwi, told Indonesia’s Kompas website that he “saw many people were trampled” in the rush to escape.
Initial reports put the death toll at about 130, but officials later announced a significant rise that put the figure at 174, with 11 more people seriously injured.
President Joko Widodo has ordered that all matches in Indonesia’s top league must be stopped until an investigation has been carried out.
Fifa, the world’s governing football body, states that no “crowd control gas” should be carried or used by stewards or police at matches.
Videos from the stadium show fans running on to the pitch after the final whistle marked the home team’s 2-3 defeat, and police firing tear gas in response.
“It had gotten anarchic. They started attacking officers, they damaged cars,” said Nico Afinta, police chief in East Java, adding that two police officers were among the dead.
“We would like to convey that… not all of them were anarchic. Only about 3,000 who entered the pitch,” he said.
Fleeing fans “went out to one point at the exit. Then there was a build-up, in the process of accumulation there was shortness of breath, lack of oxygen”, the officer added.
Videos on social media show fans clambering over fences to escape. Separate videos appear to show lifeless bodies on the floor.