ABSTRACT Agro-ecosystem by-product of palm plantation and its industry has a potential carrying capacity in term of this feed resources, so it is necessary to be optimized through a complete feed (CF) which is technically and economically feasible for feed of sheep. The aim of study was optimizing the feed resource obtained from by-product of agro-ecosystem of palm plantation and its industry in order to increase ruminant productivity. The research were conducted in two stages, namely 1) survey to identify the potency of carrying capacity on agro-ecosystem of palm plantation and its industry, and 2) experiment study, to evaluate production and productivity of the sheep fed with CF which is formulated using by-product of agro-ecosystem of palm plantation and its industry. Research location of survei was palm plantations and its industry in PTPN XIII region Paser East Kalimantan. Sixteen male sheeps nine month old age with average body weight of 14.69 +0.82 kg were used in this experiment and CF was formulated from ammoniation-fermentation from palm midrib, palm leaves, palm empty fruit bunches (EFB) and fiber fruit juice (FFJ), also Centrosema sp., palm kernel cake (PKC), palm oil sludge (POS), ground corn, rice bran, cassava, molasses, urea, mineral mix and salt. Determination of survey sample used purposive sampling. Experimental study used a completely randomized design (CRD) consisting of four treatments and four replications. Treatment were CF with different levels of crude protein (CP), namely T1, T2, T3 and T4 were 10%, 12%, 14% and 16% respectively, ration was attempted 63% iso total digestible nutrients (TDN). Data collection such as follows: nutrient consumption, nutrient digestibility, homeostasis, animal production and the feasibility of CF. Analysis of survey data be descriptive while the experimental used ANOVA with significance level at 5% and followed by Duncan Multiple Range Test (DMRT). The results of Phase I showed that feed resources consists of bark, leaves, EFB, FFJ, PKC, POS and Centrosema sp. with production 9.43, 2.23, 4.98, 0.26, 0.19, 0.28, and 0.60 tons/ha/year respectively. The results of experimental studies showed that CP levels of CF significantly (p<0.05) increase dry matter consumption, the consumption of organic material, crude protein consumption CPC, consumption of total digestible nutrients (CTDN), digestiblility of dry matter, organic matter digestibility, crude protein digestibility, haemoglobin, haematocrit, alanine aminotransferase (ALAT), aspartate aminotransferase (ASAT); daily body weight gain and income over feed cost (IOFC). The CP levels of CF was not significant effect (p>0.05) on the efficiency and feed conversion ratio (FCR). Complete feed with different CP levels economically viable (justify >2 and positive net income). Optimization of feed resources utility through CF-based agro-ecosystem of palm plantation and its industry increase ruminant productivity, especially sheep was obtained on treatment T3 with CP levels of 14% and 64.21% TDN. Keyword: optimization, agro-ecosystem, palm, complete feed, ruminant Admin 2010 Hamdi Mayulu,Ir.,M.Si