Coconut is socially and economically an important crop in Indonesia. The strategic role of coconut is indicated by the development of areas under coconut which is the largest compared to any other plantation crops. However, a study on coconut based-farming system indicated that the increase in the area under coconut and production had not improved the income of coconut farmers. This paper focuses its discussion on coconut SWOT (strength, weakness, opportunity, and threat) analysis. Based on this analysis, the author suggests that coconut industry should be improved through product diversification programs involving women which will go a long way with women empowerment and poverty alleviation program. In this regards the author also offers five strategic measures for improvement.