Sustainable development is a challenge in urban development, especially in a slum area. Management of slum is not optimal, and several slums become slums again after upgrading due to the absence of environmental management, such as Mojosongo Housing, Surakarta City, Indonesia. This article aims to create policy recommendations for environmental quality improvement in slum. The research uses a quantitative method. Secondary data were obtained from related agencies regarding environmental conditions, population data, and policies related to slum management. Primary data was collected via observation and questionnaires to 30 respondents, consisting of natives and immigrants in Mojosongo Housing. The analysis technique uses a comparative analysis of data and literature review. The results show that social and economic aspects have been proven to cause a decrease in environmental quality. The challenge of slum management in strategic areas to be sustainable is via community empowerment of social and economic aspects of livelihoods. In addition, supervision and control of development for the public interest are recommended to be more effective by applying police power (an instrument of zoning regulation) and a taxation mechanism.