BUDGET ANALYSIS CASH FLOW WITH MODEL ANALYSIS BY MILLER AND ORR AS A MAIN ELEMENT SUPPORTING POLICY OFTIMIZATION, PLACEMENT OF FOUND AND DEBT MANAGEMENT AT THE PT JASA MARGA (PERSERO) Tbk

Abstract

Fund placement optimization policy and debt management are the composition of short-term debt and long term debt used by the company. Therefore, the main problem of the debt management is treasury cash management arrangements which aim to maximize the utilization of cash without neglecting the company‟s liquidity. The company has cash based on variety of motives that the transaction motive, motive of precaution and speculation motive. Model Miller and Orr used in this study was to determine the cash optimum, where the model assumption Miller and Orr, cash flow in to and out irregular in both time and amount for each period but the distribution of daily cash flow ( the difference between cash coming in and cash out) is normal. The conclution of this study are a model of Miller and Orr shows the characteristic activities of the funding requirements, combined with the risk analysis decisions more optimal relative, because of the potensial gain from excess funds more leverage and the potensial high cost of funds on debt management more minimal.

Keywords: Cash, Debt Management and Model Miller and Orr