摘要:Third phase of research conducted to evaluate the local resource-based institution, The following objectives: 1) knowing participation in the development of “jarak pagar”, 2) who participated in the development of absolute “jarak pagar”3) formulate methods of agribusiness development “jarak pagar”. Research conducted in the District of Grati, Pasuruan regency. Units of analysis are farmers, farm group relations, group relations and the partner company or industry processing “jarak pagar” Analysis used is descriptive analysis with quantitative data presented in the table and cross. Research results are as follows: 1) Institutional Development in the “jarak pagar” a lot of people involved with the ownership of resources and skills is low, while a lack of social support network to enter the modern economy, 2) the development of embryo of “jarak pagar” in East Java beginning of understanding between PT Rajawali Nusantara Indonesia (RNI) with the Office of East Java Province, and 3) institutional Tranformasi traditional to the modern agriculture in the development of “jarak pagar” changes in behavior, not only through changes in structure, but also the changes various aspects of the abstract form of behavior, which changes the system of values, norms, orientation, and goals.