guardianship (perwalian)
Also called: wali
The management of a child or their assets by a guardian when the parents cannot do so.
What it means
Perwalian is the legal arrangement for a child who is not yet of age when their parents cannot exercise parental authority. A guardian (wali) is responsible for managing the child's person and assets until the child reaches adulthood or until circumstances change. A guardian can be appointed by the parents through a will or appointed by the court. In Indonesia, perwalian usually runs alongside registration at the religious affairs office or civil registry.
Why it matters for families
Perwalian determines who has the authority to sign for the child's asset matters, including selling or pledging assets. Without a lawful guardian, banks and notaries may refuse transactions on behalf of the child. Misunderstanding the limits of the guardian's authority can lead to the child's assets being used for the guardian's personal interests. Therefore, the guardian's decisions should always be accountable.
Example
For example, both parents die and leave a 10-year-old child with Rp150 million in savings. The grandmother is appointed as guardian through a will and a court order. She may only use the funds for the child's needs, such as school, not for her own business.
Common misunderstanding
Many think a guardian is free to use the child's assets because they are already trusted by the family. The correction is that a guardian must manage the assets for the child's benefit and can be held accountable.