Background/ Objectives and Goals Every corporate need cash. Corporate cash holdings always involve a trade-off between benefits and costs. Companies must hold cash on hand for different reasons such for the requirement of liquidating current assets to make payments of the companies transactions, dealing with unpredicted events, and so on. On other hand liquidity has high potential costs that will reduce corporate profit. Cash is unproductive asset that have small added value. In this this study has some specificity. First, this research analyse determinant of optimal cash holding in Indonesan Firms. The Second this research to identify the deviation of Indonesia Firms’ cash holding from the targeted level and identify speed of adjustment to reach the targeted cash holding of Indonesian firms.