Forest Management Unit (FMU) was one of top priorities in order to improve forests governance and strengthening decentralization in the forestry sector. Many policies have been introduced to expedite FMU development such as Interior Ministry Regulation (Permendagri) 61 Year 2010 regarding Guideline on Organization and Procedure of Production Forest and Protection Forest Management Unit. This I study aimed at describing the implementation of organization policy of the Berau Barat FMU Model (KPHP). This study was also trying to identify and analyze factors which influence the implementation process of the policy. The method used in this study was qualitative based on primary and secondary data. The data were collected by interviews, observation and documents reviews. Some Government officials were interviewed including officials from the Ministry of Forestry, the Provincial Government of Kaltim, the Berau District Secretariat, the Forest Service of Berau, and forest experts. The result of this study showed that the implementation of the Organization Policy of the Production of the Forest Management Unit according to the Berau Barat Model In Berau District was done in stages. The establishment of UPTD, was the first stage in the gradual process of KPHP development towards SKPD l (Satuan Kerja Perangkat Daerah).At this stage activities include socialization, staff assessment, and consultation meetings. Key factors in the implementation process are communication, infrastructure, human and financial resources. Communication include clarity of regulation, consistency with other regulations, and coordination among parties. In addition, bureaucractic factors which include unclear standard operating procedures (SOP) of organization establishment, concept note making process, coordination rules among institutions in SKPD development, needs certain time and funding allocations due to political processes in the local parliament. To achieve effectiveness, it was recommended to develop effective communications involving all decision makers and other stakeholders. In addition sufficient infrastructure, human and financial resources were critical. Enhancing bureaucracy I was also recommended to guarantee the success of the process.