This article describes the concept, relevance, principles and milestones about policy. Based on William Dunn's framework, it also tries to describe the purposes of policy analysis and its implementation that are needed on health decentralization. In Indonesia the health decentralization has been implementedfor some years but policy analysis is understood as regulation analysis which has been directed by the Deparfment of Health. At present the implementation process of the health decentralization, the Central government still has double functions as policy maker and performer In fact based on regulations, the responsibilities have been delegated to District governments. Understanding the policy analysis on the implementation of health decentralization would provide challenges to interpretate in accordance with the localspecific conditions.