The ability of rural communities responding to vulnerabilities highly depends on local and institutional adaptations. The institutional adaptation is formed based on habits rooted in the community's local knowledge and life experience. Utilization of traditional agroforestry on rural land is unique for each individual, resulting different livelihood strategies to deal with vulnerability. This study aims to understand institutional impacts on the choice of rural livelihood strategies through traditional agroforestry using an institutional approach (traditions, customs, and rules) and a livelihood framework. This research was conducted in Booi Village, Maluku, from October 2016 to September 2018. The data was collected through in-depth interviews and document studies. Interviews were conducted to key informants such as Raja (head) of Booi Village, farmers (landowners), community members who did not own land, and village governments. The results showed that the community had a variety of choices for livelihood strategies, including intensification, extensification, diversification, and "holding" nutmeg seeds. The presence of institutional impact was also proven to have a significant effect on the livelihoods of the Booi community, for example, in the form of access for the community who did not have assets (informal insurance). The perspective of economics (neo-classical) is still debating the availability of land as a resource that is physically available, fixed, and limited. In this context, mainstream economists only view land as a tangible asset, while the old institutional economist sees resources as something functional and dynamic (Nugrohowardhani, 2016). In other words, the use of plantation resources in the form of traditional agroforestry does not only affect the household economic aspects of rural communities but also social and cultural aspects based on their local knowledge and experience (Jose, 2009; Martin et al., 2016).