It is believed that to achieve Healthy Indonesia 2010 vision health financing is a significant factor that affects the quality public health. However, according to Human Development Index’s indicators, Indonesia is at 110th position of 177 countries in the world. The present study has been carried out to understand the politic and financing policy in the management of government hospitals own by DKI Jakarta. Two DKI Jakarta own hospitals i.e. Pasar Rebo Hospital and Duren Sawit Hospital were selected as samples. This study is qualitative research with using indepth interviews. To collect primery data deal with relevan roles from which the data on hospital rules and regulations as well as finance were collected during 2004-2008 period. The results of actor, content, context, and process analyses showed that financing policy consists of tariff, local revenue and expenditure budget (APBD) subsidy, poor households (gakin), notification letter for the poor (SKTM) as well as financial pattern related to hospital status. In deciding this policy, legislators of local people representative (DPRD) are the main actors. Decision making process of financing agenda and formulation was imperfect which in turn causes implementation constraint. In addition, financing policy evaluation, and adaptation processes are not implemented properly. It takes discussions and cooperation between various policy actors to produce policy. Hospital administrator who has a stategic funtion should make effort to improve internal hospital toward independence as well as external hospital by advocates legislative to correct next policy.