Industrial development, not only produces positive impact, but also the negative ones, that are the existence of pollution. Metal industry produces dioxin/furan air pollution that adversely affects living organism, both long-term and short term. This research aims to formulate policy alternative in controlling dioxin/furan pollution in developing a dynamic model of the impact of pollution of the environment, social and economic. Specific steps were executed for to estimate the emission discharged from metal industry; computing the level of emission impact on social, economic and environmental factors; and establishing the recommendation of the alternative policy for decreasing dioxin/furan pollution. The methods used were the emission factor, dispersion method, dynamic system and Multi Criteria Decision Analysis (MCDA). The result showed that the dioxin/furan emission in the assessed area had reached 9.38–13.54 g TEQ yearly for the annual production as much as 1.874– 2.152 million ton. Based on the simulation, if there was no emission reduction policy, the result would be an emission increase of 278% from 1995 up to the end of 2025, a decrease as the air quality by 0.45–0.49; 1,092 potential cancer cases, as well as the social cost. However, by the emission reduction of 46.1%, there would be a significant improvement. Based on MCDA analysis, the best alternative policy is environmental-based policy, compared to “Do Nothing” and “economic-based” policy. Environment-based policy is controlled and reduction of dioxin/furan emission that conducted by the “Command and Control” and “Economic Instrument” policy system.