The new legislation threatens up to a year in jail for unmarried couples who have sex, or six months for couple who live together but are not married.
The debate comes as part of wider changes to the country’s criminal code, which could also criminalise some forms of direct political dissent.
The BBC reports the governor of popular youth holiday destination Bali, where the proposals have been dubbed the "Bali bonking ban", has pledged not to screen the marital status of tourists.
Indonesia’s deputy justice minister, meanwhile, confirmed foreign tourists would not be charged under the new laws, which are unlikely to take effect for at least three years, and are likely to be subject to legal challenge.