Indicator based information systems for sustainable forest management is emerging as a good alternative to traditional management practice of our forests. However, most of the indicator based management system fail, due to their complexity. This paper on the findings of a study in Kodagu district of Western Ghats aims to answer basic questions which are very important for the successful finding and implementation of indicators for sustainable forest management. The question of indicators for whom? with whom? why? and how? The complexity of forest management in the districts resulted in identification of three clients for the use and implementation of indicators. The study reveled that it was only the sacred forest management committees who were in need of indicator based management tools. The paper discusses the methodology used for the identification of Pre-indicators and the co-construction procedure of developing indicators. The study highlights the relevance of simple co-constructed indicators for effective management of community managed sacred forest.