Currently, local knowledge is an important consideration for practitioners and public policy academics. Some parties argued that the failure of program implementation was caused by the fact that policy did not pay attention to the reality of society and tended to make the community as a passive target group. This study aimed to illustrate the importance of including local knowledge in program implementation, especially program for local economic development. This research was a case study on PIJAR Program in Dompu Regency, West Nusa Tenggara Province. Researchers argued that local knowledge became an inseparable part in the implementation of the program and public policy in order to improve the welfare of the community. The data in this study was taken through the process of interviewing the community and related agencies, and observation. The results showed that considering local knowledge would improve program effectiveness due to (1) recognition that local communities were active in implementing programs that accommodate local knowledge and context; (2) local knowledge as an inseparable part of the community; (3) awareness of the development of local potentials owned by communities, local governments and private sectors. This research is expected to be useful for practitioners and academics to make the knowledge of local people as part of the values that must be included in every process of program implementation.
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