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The institutional sustainability of SMEs is determined by the ability of institutions to build an input-process-output relationship and the contingency power of the environment. The purpose of this study is to analyze the relationship between institutional sustainability and the sustainability of production. Data collection was carried out by field observations, in-depth interviews and documentation and data were analyzed using a case descriptive technique. The results of the study show that SMEs of fish processing unit that can operate sustainably is only 38 percent. Institutional Sustainability of SMEs of fish processing unit can be seen from its ability to provide input systems with continuous in quality and quantity; carry out the production process in accordance with the principles of GMP and SSOP dynamically and continuously; the ability to build a product marketing system through extensive network and marketing cooperation; and maintain contingency with the mandate environment; both suppliers, customers and competitors. The contingency power with the political and economic environment supporting the institutional sustainability of SMEs.