This study aimed to analyze the impact of the elimination of cassava starch import restrictions on economic performance cassava Indonesia and formulated alternative policies in order to self-sufficiency in cassava and cassava starch. This study used econometric model 2SLS with a system of simultaneous equations and used time series data 1992-2011 period. Results from this study showed that: 1) Eliminating cassava starch import restrictions caused quantity of cassava starch import only increased by 1.11% and only resulted in domestic cassava starch price fell by -0.04%, the price of cassava decreased by -0.006% and cassava production fell by -0.004%. 2) Cassava self-sufficiency can be achieved through an alternative policy as follows: a) an increased in harvested area by 5%, b) increasing cassava productivity by 5%; c) combined increasing harvested area 1% with increasing productivity 2%. While self-sufficiency cassava starch can be achieved through a policy of increasing the capacity of cassava starch industry by 15% combined with the policy alternatives as follows: a) increasing harvested area 15%; b) increasing harvested area of 1% and increasing productivity by 15%; c) increasing harvested area by 5% increasing productivity by 10%; and d) increasing harvested area of 10% and increasing productivity by 5%.
