PM defends cash support for 'new Balis'

Malcolm Turnbull has defended Australia's decision to provide money to the World Bank to help boost Indonesian tourism and create 10 so-called "new Balis".

During a trip to Broome the prime minister dismissed claims the unknown contribution would encourage Australians to skip local tourism destinations in Australia's north, like the Kimberley region in Western Australia.

"We are focused on tourism in Australia and we're making substantial investments into tourism infrastructure like the Cape Leveque road here in the Kimberley," he told reporters.

He added the federal government had chipped in $50 million for the 60 kilometre road and was looking at ways to support other tourism infrastructure.

Indonesia is reportedly seeking a $230 million loan to initially develop three areas - Lake Toba in North Sumatra, Lombok in West Nusa Tenggara, and Borobudur temple site in Yogyakarta in Central Java - and an extra $721 million based on results.

It's unclear how much the Australian contribution will be.