Provisi

Provisi is a term used in Indonesian and Malay language contexts to refer to provisions—clauses, conditions, or financial reserves—found in documents such as laws, contracts, and financial statements. The word encompasses both legal stipulations that set out rights, duties, or conditions, and financial items that allocate resources for anticipated obligations.

Etymology and usage vary by context. In legal texts, a provisi (proviso) is a specific clause appended to a statute, regulation, or agreement that introduces a condition, exemption, or limitation. It serves to limit or qualify the applicability of the main provision. In accounting and finance, provisi (provisions) are reserves set aside to cover expected or contingent costs, such as bad debts, warranties, or asset write-downs. These provisions are recognized on financial statements to reflect probable future expenditures.

In practice, provisi appear in several forms. Legal provisi may specify eligibility requirements, time limits, or exceptions that govern the implementation of a law or contract. Financial provisi are routinely used to manage risk and ensure that a company’s reported results reflect probable liabilities, even if the exact amount or timing is uncertain. The exact meaning and treatment of provisi can differ by jurisdiction and field, so practitioners distinguish clearly between legal clauses and financial reserves.

See also: proviso, provision, clause.