Smartway describes a service innovation in transportation with development of two way interaction between government and citizen. Citizen is viewed as a government's partner in Traffic Management System decision-making process. This research will exercise an innovative G2C/C2G relation in the transportation sector where both share responsibility for shaping the service to precisely meet people's need. Connecting user-domain information and traffic control mechanism will create a closed feedback control system that can be established to achieve the desired optimal state. Kalman filter is used to predict the number of vehicles which pass a certain segment for the purpose of decision making in traffic control. Additionally, prediction can be used to determine the cycle time of an intersection. © 2016 IEEE.