The purpose of this study to describe profile and to elaborate problem in order to indentify knowledge manegement system are needed for quality improvement woven handycraft industry. These study have done at DI Yogyakarta, Indonesia,  as one of main producer of handycraft. Many products of handycraft industry  was exported to several country such as Japan,  Taiwan and the United States with total value achieve 69,8 million US$ in 2013. There are several plant as resources of natural fiber to create many product of handycraft industry such as rattan, bamboo, pandanus, enceng gondok (eichhornia crassipes).  The  supply chain of natural fiber craft industry consistsof  the producer natural fiber, craftments, trading company, domestic distributor , local  and international market.  There are knowledge that  important to produce and improve quality of handycraft are processing natural fiber, method to make wibben, design and assembling process, packaging. Using AHP to selection the critical knowledge were asked to expert are   productionmanagement  (0.41), marketing and communications ( 0.19 ), packaging and distribution (0.17),product design (0.15) and production process (0.07). In future are needed research for developing knowledge in detail and  design of application expert management system.