In recent years, the sediment management is not only for disaster prevention function, but it also considers the environment surrounding of the target area. After a big eruption of Mount Merapi in 1969, sediment control facilities have been constructed to prevent sediment disaster in the basin. On the other hand, local people have used the sediment from Mount Merapi as one of resources through sand mining activities. The sediment disaster mitigation and sand mining activities have given the impacts on socio-economics as well as environment condition in the area. In this paper, the impacts of sediment management in the area are discussed from views of both the socio-economics and the environment aspects. From socio-economical and environmental views, it showed that the combined management between controlled sand mining and installed groundsill is preferable for sediment management in Mt. Merapi area. However, the sediment management needs to be supported by other activities such as economical development, thus the aims of the sediment management can be reached.