The processing of Merbau wood (Intsia spp.) has become an important issue as Papua Province asked the Central Government for log export dispensation. However, in order to keep the value added of the log, Indonesian Government through Presidential Decree No. 7, 2002 offered industries that handling Merbau's wood to relocate from East Java to Papua. In the aim of evaluating objective condition of wood merbau utilization and merbau wood based industries relocation urgency, The comprehensive study has to be done on raw material potency, recent log distribution, relevant regulation and labour involved in industries. The study is divided into two parts. Part one of this study focused on recent condition in Papua, includes data collecting of merbau wood potency and reviewing merbau wood industries. While, the second part, which will publish in different paper, concerning about merbau wood industries in East Java that will be relocated. The result of part one study shows that merbau's potency in Papua is large. The potency is about 2.662 3 million m /year from natural forest. The wood industries in Papua is relatively sufficient for merbau wood utilization. The industries contain 9 large wood mills and 66 units of small-medium scale wood-mills, which process merbau wood. Mostly, they sawed merbau wood into sawn timber type S2S and S4S. It is also noted, that there are a lot of small sawmill in forest area that saws merbau wood into balken using chainsaw. In fact, the industries in Papua lacks of merbau wood as raw material. Based on evaluation, it can be concluded that the relocation of merbau wood industry is not sufficient alternative. Merbau wood still can be utilized by local industry. The important thing to do is improving the technical ability of local industry to increase wood yield and improvement of merbau wood products marketing.
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