This study aims to examine the effect of foreign institutional ownership on cash holding rates and test the impact of foreign institutional ownership on firm performance. The data in this study used a sample of 165 non-financial companies listed on the IDX and had a proportion of foreign institutional ownership of more than 1% during the period 2016 - 2021. This research uses quantitative methods. Sources and types of data, this study uses secondary data on financial statements obtained from the Bvd Osiris database and KSEI. The data is processed into panel data by choosing the best model of common effect, fixed effect, and random effect. The best model in this study is the fixed effect model. This research conducted a robustness test using the lag factor on the independent variable. The results of this study show that foreign institutional ownership significantly negatively affects the company's cash holding rate. The results of subsequent studies showed that foreign institutional ownership positively affects firm performance.