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This study aims to analyze the productivity improvement strategies of the agricultural sector based on the problems faced by the agricultural sector in Central Java, Indonesia.

The analysis is done through interviews, literature studies and analytical hierarchy process data processing aids.

The results show that the strategy for developing the agricultural sector in Central Java needs to be focused on institutional factors to organize the field agricultural sector institutions. The ideal institution for the development of the agricultural sector in Central Java is cooperatives that can be accompanied by the Islamic Microfinance Institutions (LKMS).

This paper will contribute new knowledge specifically about the productivity improvement strategy through the cooperative institution.