The objective of this research is to propose strategic formulation of poverty reduction model based on economic empowerment and local resource based management. This study has been conducted in Central Sulawesi Province, Indonesia, using in-depth interview and SWOT analysis methods. This research finds out that potential local resources, in this case is coconut shell briquette charcoal, did not supported by human resources capability to improve its value. Hence, some viable strategies are: first, strengthening partnership between businessman and government as well as universities. Second, developing technology used and market information access to national and international market. Third, enhancing capacity and helping small business and fourth increasing financial management capability in managing small business, business coaching among entrepreneurs, and regulation to increase value added of the product.
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