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Glossary

230 terms that often leave families confused.

Terms from insurance contracts, deeds, certificates, and money conversations — explained without jargon, with worked examples and the misunderstandings that come up most often.

Family finances 41Education 41Inheritance & documents 42Insurance & risk 40Property & mortgages 31Family relationships 35
ABCDEFGHIJKLMNOPRSTUVWZ

A

18
  • academic calendarThe official schedule of the academic year containing holidays, exams, and report card distribution.
  • academic yearA learning period from around July to June of the following year that serves as the basis for billing education costs.
  • account separationAn agreement between partners to keep some funds in their own accounts, not only in joint ones.
  • active policyA policy status that remains in force because premiums are paid on schedule.
  • activity feeA fee for school activities outside class hours such as study tours or competitions.
  • admin feeA document and administration fee paid when the mortgage agreement is signed.
  • adopted childA child adopted legally or by custom and treated as a biological child.
  • ahli warisA person entitled to receive property from the deceased under law or a will.
  • AJBOfficial deed of sale and purchase of land and houses made by PPAT as proof of transfer of rights.
  • akreditasiQuality assessment of a school or study program by an authorized body, such as BAN-PT.
  • akta di bawah tanganAn agreement document made by the parties without a public official.
  • akta kelahiranAn official civil registry document proving a child's birth and identity.
  • akta notarisAn official document made by a notary that has strong evidentiary force.
  • all riskA type of vehicle insurance that covers almost all damage, with certain exclusions.
  • annuity interestAn installment method with the same total payment each month, where the interest portion shrinks and the principal grows.
  • APHTA deed that makes a house collateral for a debt to the bank.
  • appraisalA bank appraiser's assessment of a home's price to determine the mortgage ceiling.
  • automatic savingsRegular transfer of funds to a savings account without manual action.

B

12
  • bagian mutlakAn inheritance share that a will may not violate for certain heirs.
  • basic benefitsThe main protection automatically included in a policy before any additions.
  • basic needsEssential spending for food, housing, health, and basic education.
  • beasiswaEducation funding assistance that does not need to be repaid, usually with certain conditions.
  • beasiswa penuhA scholarship that covers all tuition costs and sometimes living costs.
  • beneficiaryThe person named in the policy to receive life insurance benefits.
  • benefit payoutMoney paid by the insurance company to the beneficiary according to the policy.
  • blended familyA family formed through remarriage, including biological and stepchildren.
  • BPHTBTax paid by the buyer when acquiring rights to land or buildings.
  • BPHTB warisBPHTB that arises when acquiring land or a house through inheritance.
  • breadwinnerThe family member whose income is the main source of household living costs.
  • building feeA facility development fee charged once when a new student enrolls.

C

19
  • cash flowThe difference between money coming in and money going out in one period.
  • cash valueThe value of funds in certain policies that can be withdrawn if the policy is terminated.
  • cashless claimA claim method without paying upfront, billed directly to the insurance at a partner hospital.
  • certificateA document proving ownership of land and buildings issued by BPN.
  • child custodyThe authority to care for and support a child, usually decided by a court when parents separate.
  • child education fundMoney set aside specifically for a child's school costs, from primary through higher education.
  • child supportA former partner's obligation to cover a child's living costs after divorce.
  • chipping inSplitting the cost of something equally or as agreed among family members.
  • claimA request for benefit payment to the insurance company when a covered event occurs.
  • claim deniedAn insurance company's decision not to pay a claim because it does not meet the policy terms.
  • co-insuranceThe sharing of risk among several insurance companies for a single insured object.
  • co-paymentThe fixed portion of medical costs that the insured always pays each time they seek treatment.
  • collateralAn asset pledged to the bank, in a mortgage usually the house itself.
  • compound interestInterest calculated also on the previous period's interest, so the balance grows faster.
  • consumer creditA loan for household consumption needs, not for business or productive assets.
  • courseExtra learning activities outside school to strengthen subject matter or skills.
  • court order (penetapan pengadilan)A court ruling that establishes inheritance status or distribution.
  • credit cardA buy-now-pay-later payment tool whose bill is paid off each month.
  • credit ceilingThe maximum loan limit approved by the bank for your KPR.

D

8
  • debtAn obligation to pay a sum of money to another party due to a loan.
  • debt ratioThe comparison of total installments to monthly income.
  • deductibleThe amount you pay yourself first before insurance starts paying.
  • deed of grantA notary or PPAT deed recording the giving of assets to a grant recipient.
  • deed of sale and purchaseA PPAT deed recording the sale and purchase of land as the basis for name transfer.
  • DPThe down payment paid by the buyer upfront, with the rest payable in installments via KPR or cash.
  • due dateThe final deadline for paying an installment or bill.
  • duplikat aktaAn official copy of a deed issued by a notary to replace the original document.

E

15
  • early childhood educationThe education level before elementary school for young children, both formal and non-formal.
  • early repaymentPaying off debt ahead of schedule, usually with certain fees.
  • education fundMoney set aside specifically for children's school costs.
  • education insuranceAn insurance product with an education fund benefit; its costs and illustrations need careful review.
  • education levelStages of formal education from early childhood education, elementary, junior high, senior high, to higher education.
  • effective interestInterest calculated on the remaining loan principal, not on the original principal.
  • elderly parent care costsExpenses for caring for elderly parents, including medicine, caregivers, and housing.
  • emergency fundSavings set aside specifically for unexpected costs, kept separate from the daily account.
  • entrance feeThe initial school/campus entry fee paid once at the start, separate from monthly tuition.
  • equivalency educationA non-formal education program equivalent to elementary, junior high, or senior high school for those not on the formal track.
  • exclusionA list of conditions or events not covered by an insurance policy.
  • executor of a willThe person appointed by the testator to carry out the contents of the will after they die.
  • expense categoryA grouping of expenses in a budget, such as food, transportation, or loan installments.
  • expense record bookA daily record of money in and out to monitor spending habits.
  • expense trackerA person or record that logs all household expenses so they stay under control.

F

13
  • family budgetA plan for dividing monthly income into spending categories before the money is spent.
  • family business capitalFunds pooled by family members to start or run a shared business.
  • family cashA pool of shared funds used for everyday household needs.
  • family finance managerThe family member responsible for managing cash flow, bills, and household financial records.
  • family money meetingA regular family meeting to discuss budgets, bills, and spending plans.
  • financial goalA money target with a clear amount and deadline, such as a child's school fund.
  • financial power of attorneyA document that authorizes a family member to manage accounts or transactions.
  • fixed expensesExpenses whose amount is relatively the same each month and hard to avoid.
  • fixed interestA loan interest rate that does not change for a certain period.
  • flat interestInterest calculated on the original loan principal throughout the tenor.
  • floating interestA loan interest rate that can rise or fall following the lender's policy.
  • foster parentA person who takes on the caregiving and living costs of a child without legally adopting them.
  • free look periodAn initial period to cancel a policy without penalty if it doesn't suit you.

G

4
  • guarantorA person who bears repayment of another family member's debt if the borrower fails to pay.
  • guardianA person given the authority to manage a child and their assets, for example when parents are unable to do so.
  • guardianship (pengampuan)The appointment of a party to manage the assets of a person who is legally incapable of acting.
  • guardianship (perwalian)The management of a child or their assets by a guardian when the parents cannot do so.

H

10
  • hak tanggunganDebt collateral on land or a house registered with BPN.
  • harta bawaanProperty brought by each party before or outside the marriage.
  • harta bersamaProperty acquired during marriage that generally becomes jointly owned.
  • health insuranceInsurance that covers medical treatment and hospitalization costs according to policy terms.
  • health surveyA medical examination requested by the insurance company before issuing a policy.
  • heirs' statement letterA written statement from the heirs about their agreement on how to divide the estate.
  • hibah (lifetime gift)A voluntary transfer of assets while the giver is still alive, usually through a notarial deed.
  • holographic willA will written and signed by the testator themselves and then kept by a notary.
  • homeschoolingA child's education at home with a curriculum managed by the family, not at a formal school.
  • household spending moneyA routine budget for daily household needs such as food, transport, and cleaning.

I

10
  • IMBBuilding permit; now replaced by building approval in many regions.
  • inclusive schoolA school that accepts students with special needs to learn alongside other students.
  • inheritanceAssets left by a person and distributed to heirs according to law or a will.
  • inheritance distributionThe process of determining and handing over each heir's share.
  • inheritance taxA regional levy when inherited property is transferred, calculated from the acquisition value.
  • installmentA regular debt payment in an agreed amount and on an agreed schedule.
  • insuredThe person whose life or health is protected under an insurance policy.
  • interestAn additional cost paid by a borrower on money borrowed.
  • international schoolA school with a foreign or mixed curriculum, with much higher costs.
  • intestate inheritanceDistribution of inheritance under the law when no will governs it.

J

6
  • jalur afirmasiA special admission pathway for students from low-income families or certain areas.
  • jalur prestasiA school or campus admission pathway using report card grades or competition achievements.
  • joint accountAn account used jointly by family members for household expenses.
  • joint agreementA financial decision made after discussion and approved by all parties involved.
  • joint debtA loan taken by agreement between partners that becomes a household responsibility.
  • joint liabilityA situation in which several people bear the same debt or obligation together.

K

5
  • kartu keluargaA civil registration document that records the members of a household.
  • kindergartenA preschool level for children around 4-6 years old before entering elementary school.
  • kip kuliahGovernment tuition assistance for students from low-income families.
  • KPRA bank loan to buy a house, paid in monthly installments over a set period.
  • KTPAn official resident identity card containing personal data, valid throughout Indonesia.

L

9
  • land certificateProof of land ownership rights issued by the land authority.
  • lapseAn inactive policy status because the premium was not paid within the grace period.
  • late payment feeAn extra charge applied because an installment is paid past its due date.
  • legalisasiCertification of a signature or copy of a document by an authorized official.
  • letter of inheritanceAn official statement of who the heirs are, used to manage assets.
  • life insuranceA product that provides compensation to the family if the breadwinner dies.
  • lifestyleSpending patterns for consumption that are not basic needs.
  • loan principalThe amount of money borrowed before adding interest and other costs.
  • long-term goalA financial goal with a deadline of several years, such as a pension fund.

M

8
  • maintenanceThe obligation to provide for family members' living needs, generally governed by family law.
  • mandiriA state university admission pathway where the test and fees are set by each campus.
  • masa tenggangExtra time to pay a late premium before the policy becomes lapse.
  • masa tungguThe initial period of the policy during which certain claims cannot yet be filed.
  • minimum paymentThe smallest amount that must be paid so a credit card is not considered overdue.
  • monthly moneyA fixed monthly contribution from family members to a shared fund or shared needs.
  • monthly tuitionThe monthly fee paid by parents for school operating costs.
  • mortgage takeoverTaking over someone else's mortgage instalments by paying a sum of money to the previous owner.

N

6
  • name transferThe process of changing the name of the rights holder on a certificate or ownership document.
  • negative cash flowA condition where expenses are greater than income in a period.
  • net incomeThe money received after tax and other deductions.
  • NJKPA certain percentage of NJOP used as the basis for calculating PBB.
  • NJOPThe value of land and buildings set by the government as the basis for calculating PBB.
  • notarisA public official authorized to create authentic deeds for certain legal acts.

O

1
  • online loanAn app-based loan whose license and interest must be checked before use.

P

26
  • parental allowanceA sum of money given regularly by a child for their parents' living needs.
  • PBBAnnual tax on land and buildings paid by the owner to the local government.
  • pddiktiThe official site to check the accreditation status and legality of a campus or study program.
  • pemberi hibahThe party who transfers their property under a grant agreement.
  • pemegang polisThe person who buys and pays the premium, not necessarily the same as the insured.
  • penaltyA fine charged by the bank if the mortgage is paid off early or the agreement is cancelled.
  • penanggungThe insurance company party that bears the risk according to the policy agreement.
  • penerima hibahThe party who receives property under a grant agreement.
  • pengesahan ahli warisThe process of certifying the list of heirs by the village head, a notary, or the court.
  • personal debtA loan taken by one family member in their own name, outside a joint agreement.
  • piggy bankA place to keep loose change or daily savings at home.
  • pocket moneySmall amounts of money given regularly to a child for their personal needs.
  • policyThe official insurance agreement document containing the rights and obligations of both parties.
  • policy illustrationAn estimate of policy benefits and costs, not a guarantee of future results.
  • power of attorney to sellA special power of attorney granting authority to sell an asset on behalf of the owner.
  • PPATThe official authorized to create deeds on the transfer and encumbrance of land rights.
  • ppdbThe new student admission process at schools, usually opened once a year.
  • preexisting conditionA condition that already exists before the policy is active and is usually limited or excluded.
  • premiumMoney you pay to an insurance company regularly to keep the policy active.
  • prenuptial agreementA written agreement made before or at the time of marriage that sets out the separation of assets and debts.
  • private schoolA school run by a foundation or private body, with varying costs.
  • profit sharingDistribution of family business profit according to the capital share or an agreement made together.
  • provision feeAn upfront bank fee on a mortgage, usually a percentage of the credit limit.
  • ptnA state-run campus, generally costing less than a private campus.
  • public schoolA government-run school, with costs that are relatively lower than private schools.
  • public willA will made before a notary and recorded in an official deed.

R

16
  • re-enrollmentThe confirmation process for accepted students by paying a fee; if not done, the seat may be forfeited.
  • refinancingReplacing an old mortgage with a new one, usually to get a lower interest rate.
  • registration feeA fee paid when registering for a school or campus, non-refundable.
  • regular premiumA premium paid regularly, for example monthly, quarterly, or annually.
  • reimbursement claimA claim method by paying medical costs first and then requesting reimbursement.
  • reinsuranceInsurance bought by an insurance company to share large risks with another party.
  • release of rightsThe act of releasing rights over an asset, such as land, to another party.
  • renovationRepairs or changes to a home, which can be funded by savings or a renovation loan.
  • renovation loanA loan specifically for repairing or renovating a home.
  • rentPaying to use someone else's house for a certain period.
  • rental depositSecurity money paid by the tenant upfront, returned if there is no damage.
  • retirement fundMoney gathered so living needs remain met after stopping work.
  • revocation of a willThe act of a testator canceling an old will, either explicitly or through a new will.
  • riderAdditional protection purchased separately on top of the policy's basic benefits.
  • robbing Peter to pay PaulBorrowing new money to pay old debt, making the burden pile up further.
  • royaThe process of removing the mortgage right on a certificate after the KPR is paid off.

S

24
  • savingsMoney set aside and not used for current consumption.
  • sdThe first six years of basic education for school-age children.
  • secret willA will whose contents are kept confidential and handed over sealed to a notary.
  • separate accountsPersonal accounts not mixed with household money.
  • separation of assetsAn arrangement in which the husband's and wife's assets and debts remain separate during the marriage.
  • service charge feeA monthly fee for cleaning, security, and shared facilities in a housing complex or apartment.
  • shared caregivingDividing tasks and costs among family members to care for a sick parent.
  • sharia insuranceInsurance managed under sharia principles, without elements of riba and gharar.
  • SHGBA certificate for land use rights for a certain period, common for developer houses.
  • SHMA certificate of full ownership of land, the strongest type of certificate.
  • short-term goalA financial goal to be achieved in less than one year.
  • single premiumA premium paid all at once at the start, rather than in installments each month or year.
  • smaThe three-year upper secondary stage after SMP, before university.
  • smkA secondary stage with specific vocational skills, whose graduates are ready to work or continue studying.
  • smpThe three-year lower secondary stage after elementary school.
  • snbpA public university admission pathway based on report card grades and achievements without a written test.
  • snbtA public university admission pathway through a computer-based test whose result is the main requirement.
  • stamp dutyA document tax in the form of an affixed stamp or e-stamp so a letter is formally recognized.
  • stepchildA child from a previous marriage who joins a new family without a blood tie to the stepparent.
  • strata titleProof of ownership of an apartment unit along with rights to the shared parts of the building.
  • subrogationThe insurance company's right to recover from the party that caused the loss after a claim is paid.
  • sum insuredThe maximum benefit the insurance company will pay for a risk.
  • surat kuasaA document that gives another person the authority to act on behalf of the grantor.
  • surrender valueThe money received if the policyholder stops the insurance before maturity.

T

6
  • tabarru fundA mutual-help fund in sharia insurance used to pay claims.
  • take overMoving the remaining mortgage from an old bank to another bank with a lower interest rate.
  • tenorThe length of time a loan must be repaid according to the agreement.
  • testamentaryDistribution of inheritance that follows the contents of the testator's will.
  • total loss onlyA type of vehicle coverage that pays only if damage is very severe or the vehicle is lost.
  • trustee guardianA person appointed by parents to care for a child if the parents die or become unable to do so.

U

5
  • uktTuition fee per semester at public universities, differentiated by students' economic ability group.
  • underwritingThe process of assessing the risk of prospective participants before a policy is approved or rejected.
  • uniform costThe cost of official school clothing, usually billed at the start of the school year.
  • unit linkAn insurance product that combines life protection with investment, and its value can go up and down.
  • utbkA computer-based test whose score is used for admission to state universities via the SNBT pathway.

V

3
  • variable expensesExpenses whose amount changes each month, such as shopping and recreation.
  • vehicle insuranceInsurance that covers damage to or loss of a vehicle according to the type of coverage.
  • voluntary donationA donation that by regulation is not mandatory, though schools often request it.

W

5
  • waarmerkingRegistration of a private deed with a notary so its date is certain.
  • wajib belajarThe obligation to complete basic education guaranteed by the state, currently up to the secondary level.
  • wantsSpending that can be postponed without disrupting basic needs.
  • warisThe process by which a deceased person's property passes to their heirs.
  • wasiatA person's statement of wishes regarding their property that takes effect after they die.

Z

1
  • zoningA new student admission pathway based on the distance from residence to school.

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