Indonesia's parliament is expected to pass a new criminal code this month that will penalize sex outside marriage with a punishment of up to one year in jail, officials have confirmed, Reuters reported.

The legislative overhaul will also ban insulting the president or state institutions and expressing any views counter to Indonesia's state ideology. Cohabitation before marriage is also banned.

Decades in the making, the  new criminal code is expected to be passed on December 15, Indonesia's deputy justice minister, Edward Omar Sharif Hiariej, said.

"We're proud to have a criminal code that's in line with Indonesian values," he said.

The code, if passed, would apply to Indonesian citizens and foreigners alike, with business groups expressing concern about what damage the rules might have on Indonesia’s image as a holiday and investment destination.