Organizations need to provide effective policies in aligning their social media use with organizational goals to realize the expected benefits of social media. However, while social media use has been studied, social media policy research is lacking. This study aims to examine impacts of social media policy and active use on value creation. Drawing on the Model of IT/Business Value, we assessed the interplay between social media policy and social media use on value creation in a survey research conducted with Indonesia's disaster management agencies. Our analysis results of 124 survey responses show that social media use and social media policy positively influence disaster communication capability of disaster management agencies, which in turn positively affect disaster management performance. Further analysis on the relationship between social media policy on the social media use show high partial mediating role, while we did not find the moderating role of the social media policy.