The development of production creativity in handicraft micro-enterprises requires technical support. The primary mode of support is to identify the characteristics of the raw materials that make product design appear more creative, variation, and artistic. A right quality product can potentially increase profits. This knowledge transfer process has altered the behavior of craftsmen in Java, encouraging them to adopt coconut waste as a raw material. The location of this study was Purbalingga Wetan, Purbalingga District, Central Java Province. The study design was based on a participatory rural appraisal (PRA), with the application of both qualitative and quantitative approaches. It was found that the ability of respondents to identify coconut waste characteristics was crucial to improving product quality. The number of skilled respondents applying the technique increased significantly. The skilled respondents were able to identify traits based on the age, color, fiber pattern, visual form, thickness, texture, and fragility of coconut wood or shell. An understanding of all of these characteristics was essential to improve product quality. Skilled craftsmen choose good coconut waste can produce quality handicraft products. Quality handicrafts are produced with a variety of distinctive and artistic designs and motifs. The selling value of higher quality handicraft products significantly increases the income of craftsmen. The motivation and ability of craftsmen in the technique that identifies the characteristics of coconut waste needs to be continuously developed intensively. These efforts can be made through the willingness of craftsmen to share experiences. Another way is to increase the participation of craftsmen in training and demonstration of the characteristics of coconut waste as raw material for quality handicrafts.