Labamu Drives Digital Transformation in the Furniture Industry
Digital Labamu platform introduces Manufacturing Resource Planning (MRP) tailored for Indonesia’s furniture industry, announced during the Smart Manufacturing Optimization session at the Indonesia International Furniture Expo (IFEX) 2026 at the Indonesia Convention Exhibition (ICE) in BSD City. The solution aims to address operational challenges faced by furniture and crafts SMEs, particularly in production planning, inventory, and supply chain coordination.
According to data from the Ministry of Industry (2024), the Indonesian furniture industry is dominated by micro, small, and medium enterprises. There are about 291,600 furniture MSMEs employing around 819,000 people nationwide.
On the other hand, global market opportunities remain large. The Indonesian Chamber of Commerce and Industry (Kadin) in 2024 estimated the global furniture export market to be around US$300 billion. However Indonesia’s furniture exports stood at about US$2.5 billion, indicating substantial room for growth.
Data from the Indonesian Furniture and Craft Industry Association (HIMKI) in 2023 shows Indonesian furniture exports at around US$2.8 billion with a rising growth trend. Major markets include the United States, the European Union, and Japan. Demand is also growing in the Middle East and Australia.
Digitalisation is seen as a key lever to improve efficiency and strengthen the competitiveness of Indonesia’s furniture industry amid global competition. Through collaboration with HIMKI, Labamu is encouraging firms to adopt integrated digital operating systems.
‘With a more integrated production and management system, firms can increase productivity, maintain quality, and respond to market demand more quickly,’ said Labamu CEO Emmanuelle Van De Geer.
The implementation of an integrated digital system is expected to make production processes more efficient, organise business data more systematically, and help players monitor various business stages more structurely. ‘With increasingly optimal operations, furniture producers can focus more on product innovation and expand market expansion, both domestically and internationally,’ added Emmanuelle.
As global demand rises and sales grow through digital channels, many furniture manufacturers face challenges in boosting production capacity. A primary constraint is the continued dominance of manual processes in the management of raw materials, production, and stock.
Labamu Director of Legal & Compliance Roy Sihotang noted that around 60%-70% of natural-material-based furniture producers such as wood and rattan still rely on manual record-keeping to track operations.
“This condition limits production visibility and increases the risk of errors in order and raw material management,” he said.
To address these challenges, Labamu has developed a Manufacturing Resource Planning (MRP) ecosystem designed to help producers manage business processes in a more integrated manner.
Head of Business Development Labamu Silvya Winsen stressed that the platform connects various operational functions.
“This ranges from order management, production planning, raw material management, inventory, to logistics and financial services within a single integrated system,” she said.
Silvya added that the development of the system was conducted in collaboration with the Indonesian Furniture and Craft Industry Association (HIMKI).
During 2025, Labamu together with HIMKI conducted various dialogues and digitalisation roadshows in furniture hubs such as Bali, Yogyakarta, Jepara, and Cirebon to understand the operational challenges faced by firms. Through these activities, Labamu gathered input on needs from the industry, from calculating material requirements, recording production, to coordinating between warehouses, production, and shipping.
With an integrated system, companies are expected to improve operational efficiency while expanding production capacity without adding management complexity. In addition to the production system, Labamu also provides digital solutions for sales management, including building online stores to enable furniture producers to broaden market access and manage orders digitally. (E-4)
In his remarks, Trade Minister (Mendag) Budi Santoso expressed his support for the exhibition with preparations made well in advance.
Director of the Forest Produce and Plantations Industry, Ministry of Industry, Krisna Septiningrum noted that in 2024 the furniture sector contributed 1.15% to the non-oil and gas GDP.
IFEX 2025, held from 6-9 March 2025, serves as an ideal platform for designers, manufacturers, and exporters to showcase their innovative products.