"Kebijakan tersebut dibuat untuk melindungi kalian."
Translation:That policy is created to protect you.
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Checking Wiktionary, I can kind of see it as "that" in the sense of "you already said that" or "I already knew that", but just translating it as "that" is misleading, since it's ter (agentless action prefix) + sebut (to call by name; to refer to; to address).
So it's more like "the above-mentioned policy " or "the policy which was discussed" than just simply "that."