The present work is a proposal of a set of indicators prepared for the Ministry of Agriculture and Forestry. The indicators are to be used in monitoring the implementation of the Ministry's strategy for sustainable use of natural resources. The goals of the strategy define the issues to be monitored. In selecting the indicators care has been taken, that the information provided by the chosen assessment themes and methods is based on reliable research data. In the beginning of the paper the theoretical framework enabling the choice of the indicators is constructed. The indicator concept is then introduced. The general requirements in selecting the indicators as well as their role in decision-making are discussed. The present status of the national and international agri-environmental and rural development indicator work is shortly summarised. The core of the present work is in setting up an indicator system, which is structured around specific themes. The focus is on the assessment of agricultural and rural development. At the end, an attempt is made to provide a comprehensive picture by considering the mutual inter-linkages between the various indicators. The urgency to further develop the system approach as well as the indicator approach itself as a tool for decision-making is stressed. Many problems relate to inadequate and diffuse data available. The scarcity is especially accentuated in case of socio-cultural indicators, but also the environmental data are often insufficient and fragmentary. The prerequisite for balanced and coherent development is that due attention is paid to the various aspects of sustainability. Future indicator work requires that the assessment methods be improved, but also that the policy goals are expressed more precisely.