The strategy enhanced the client’s decision-making capability and supported broader national objectives for sustainable forest management—setting a new benchmark for forestry investment analysis in Indonesia and reaffirming GG International’s reputation as a trusted advisor in strategic transformation and sector modernization.
— Indonesia —
renewal. resilience. stewardship
Strategic Forestry Benchmarking in Indonesia: Driving Investment Insight and Sector Viability
"Forests are not merely a resource—they are a foundation for sustainable prosperity."
— Shaan Stevens, Senior Advisor, GG International
Challenge
In 2001, Indonesia’s forestry sector faced a complex set of challenges. Although endowed with abundant timber resources, the sector struggled with investor hesitancy due to unreliable data, fragmented operational systems, and volatile market conditions. Many forestry concessions and wood-processing units operated without standardized performance benchmarks, making it difficult for stakeholders to gauge investment potential or sustainability.
Recognizing the strategic importance of stabilizing and optimizing its forestry portfolio, the Yayasan Kartika Eka Paksi Foundation—a prominent public sector investment body—commissioned a benchmarking study. The goal was to evaluate the viability of its wood-based investments and identify a clear path forward. The Foundation needed independent, professional insight into the operational strengths and weaknesses of its assets, which included forestry concessions and processing facilities spread across Jakarta and Balikpapan. The study would serve as a foundation for future investment decisions, allowing the Foundation to determine whether to expand, consolidate, or divest parts of its portfolio.
Strategy
To address this mandate, GG International assembled a high-caliber team led by Dr. Angus McPherson, a globally recognized forestry market specialist, and Shaan Stevens, a former Director of New Zealand’s state-owned Forestry Research Institute and strategic finance expert at GG International. Together, they brought a rare combination of hands-on industry expertise and international financial strategy.
GG International collaborated with CSA Strategic Advisory and Ernst & Young Jakarta to deliver a rigorous and multi-disciplinary review of the Foundation’s forestry investments. Their approach included:
- On-the-ground inspections of forestry concessions and processing plants to assess operational efficiency, regulatory compliance, and environmental sustainability.
- Market analysis to evaluate the Foundation’s competitive positioning, pricing power, and opportunities for vertical integration within the wood-based industry.
- Physical and financial modeling of individual business units, testing a range of market and cost assumptions to assess viability under different scenarios.
- Strategic advisory support to help the Foundation refine its investment roadmap and prioritize assets for growth or divestment.
This integrated methodology ensured that recommendations aligned with both financial metrics and sustainable forestry practices, while also being grounded in local market realities.
Transformation
The benchmarking study produced a comprehensive and actionable performance review of the Foundation’s forestry investments. GG International’s team delivered key outcomes that empowered the client to take decisive, future-focused action:
- Underperforming assets were identified, allowing the Foundation to explore restructuring, divestment, or repurposing of resources.
- High-performing units with scalable potential were earmarked for additional capital investment and strategic expansion.
- A revised investment strategy was developed, enabling the Foundation to reallocate resources based on sound financial logic, sector trends, and environmental stewardship goals.