Sustainable development is a comprehensive and balance concept to achieve a human quality of life all the time and generation. The sustainable development concept is a correction of the classical model of economic development that concentrates on economic growth despite failing to attain public welfare. Otherwise, the implementation of sustainable development is still hampered by the weak of an institutional system. Weak institutional system causing a conflict of interest and activities of economic rent-seekers and Free Rider, which accelerates the process of destruction and scarcity of natural resources, especially unrenewable resources. Therefore institutional arrangement and enforcement of the rules through the instrument of taxation, subsidies, quotas, and increased community participation with the local wisdom approach should be considered by the policymakers.