International trade is impacted by changes in the rupiah's value relative to the dollar. Exchange rate fluctuations cause foreign currency risk and losses experienced by the company. The loss occurs due to changes in the movement of currency values during international trade transactions. This can be minimized by using hedging decisions. This study aims to determine the effect of foreign debt, liquidity, company size, exchange rates, and leverage on hedging decisions in the energy sector listed on the IDX in 2020-2023. The data used were 124, and data analysis was performed using SPSS 26 software with a logistic regression analysis method. The study's findings show that while foreign debt and exchange rates have no bearing on hedging decisions, liquidity, company size, and leverage do. According to this study, before hedging is implemented, businesses might take into account the elements that influence hedging decisions.