Indonesia: strategic forestry benchmarking

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.

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:

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: