Development successful of a state supported by many factors. One of sector which has contribution in its successful is transportation sector. Transportation sector is a important sector of state development. If the transportation is good, the development becomes more accomplished so the economic can grow and automatically politic stability increases. Public policy in transportation sector is very important thing, because including people and goods movement to some area or place especially in urban. The problems of transportation in urban generally are traffic jam, traffic indiscipline, pollution, safety etc. Transportation policy directed to overcome the problems of transportation by providing priority of the more important problem to be overcome first. The air pollution caused by urban transportation is one of the biggest contribution of carbon gas on atmosphere and this problem would be discussed in this thesis. Method which was used in this thesis was qualitative method by collecting data through library research and interview to the competence sides in this research. The conclusion of this research is state policy especially transportation sector still more emphasize certain groups particularly for the sake of business. and ignored importance of public, people conditions are still weak even though today has gone in reformation era which emphasizes people in making policy. However state remain participates in international policy that is ratifying Kyoto Protocol to reduce the danger gas which causes climate alteration and global effect. Thus the state still halfhearted to perform the policy in this environment sector because of many importance, while in politic international which was leaded by state that is care about environment, that is a important issue and many pay attention in globalization era currently and in order to the state was not excommunicated in international world.