The list of criteria and indicators is combined with Montreal Process, FSC Principle and National C\&I in China. This dissertation modifies the methods from CIFOR with expert consultation and AHP methods. The process is described with data coming from a case study in Kaihua State-owned forest Farm in ZheJiang province in south China. Interviews of experts and staffs have been conducted for the selection of indicators. The final list of Criteria and Indicators defined three subsystems including 15 criteria and 59 indicators in the forest management unit, in terms of ecological condition, community concern and economic development. For state-owned forest farm, this indicator system will fulfill both international and national requirement. For the farm management, it will help to meet the demand of forest certification.