This is the 4th most frequent Indonesian word.
itu
"That" or "it."
Here, 'itu' specifies a noun ('buku') to indicate which book is being talked about.
Buku itu ada di meja.
That book is on the table.
'Itu' is used as a demonstrative pronoun to refer to the subject under discussion.
Itu adalah pilihan yang baik.
That is a good choice.
'Itu' functions to refer to a previously mentioned idea or object in the context.