Tourism place is a huge potential area for promoting local resources. Small Medium Enterprise (SME) can be used to manage the promotion activities dealing with the natural resources and the society. Reservoir is a natural or artificial lake functioning to store water. Surrounding area of the reservoir has beautiful scenery that attracts many people to come, such as Kubangkangung which is a reservoir located in Cilacap, Central Java, Indonesia. This paper is written because there are many tourism places that have not been explored optimally either the human resources or natural resources. Kubangkangkung reservoir is a public natural tourism opened in 2014. It’s necessary to have mutual supporting cooperation between the local government and local society in order to improve the local society economy. It’s also important to build a good management of tourism place in SME, such as socialization and training for local society about SME in order to optimize the results of natural and human resources. Thus, it will be able to create a good tourism place with good society economy. The data of this paper were derived from several supporting books and research journals, one of them is about government role in managing SME management in Kubangkangkung located in Cilacap, Central Java, Indonesia.