Drug is one of the essential elements in healthcare that should be effectively and efficiently managed. Following the decentralization in 2001 in Indonesia drug management has changed in district drug management units and also in District General Hospitals. Certainly this condition influences the sustainability of drug accesss in primary health care such as in Community Health Center and District General Hospital especially in drug financing policy. A cross sectional descriptive study to obtain information on drug management in public healthcare in district had been carried out between July and December 2006 in 10 District Public Drug Management Units from 10 district health officess and 9 district general hospitals as samples. Data were collected by interviewing heads of Drug Section in District health offices and heads of Hospital Pharmacies using structured questionnaries and observing drug storage in District Drug Management Units Community Health Centers and Hospital Pharmacies. Result of the study show that drug planning in District Head Offices and General Hospital did not meet the basic real need in some district nor District Hospitals. The minimum health service standards had not been achieved yet. Furthermore drug procurement storage and recording as well as reporting was not good enough either such as shown by the existence of expired drugs. Lead time for drug delivery to community health centers in some districts was longer than the average of lead time in the past 3 years.