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The objective of this study is to determine the effect of financial-characteristic and risk management policy of the firm on its demand on cash. The hypothesis of corporate cash holding behavior is tested using multiple regressions by publicly traded Indonesian manufacturing companies in the 2011 – 2015 periods.  According to descriptive statistics test, Indonesian manufacturing company hold on average 9% cash to total assets. Results of the study shown that net-working capital, cash flow, growth opportunity variables have significant impact on corporate cash holding, while size of the firm, leverage, profitability, and capital expenditure are not significant. These finding indicates that common practice of Indonesian group of companies has impact to the degree of influence of some internal financial variables on corporate cash holding. This study also found that hedging as a risk management’s instrument has significant effect on corporate demand on cash, but reduced by its interaction with leverage.

Corporate cash holding, financial-characteristic, risk management, macroeconomics uncertainty, hedging, interaction-effect.