This study examined how the performance measurement system developed in the public sector. The purpose of this study was to examine the technical and organizational factors that influence the development of performance measurement system in Indonesia Central Government. Research data was collected through surveys and semi-structural interview at the Budget Officer of Finance Ministry of Indonesia Central Government. Subsequently, analysis of research data was using Partial Least Square (SEM-PLS). The study results show that technical factors significantly affect the development of performance measurement system for the central government operational and incentive orientation (except the difficulty determining performance indicators factor). In addition, organizational culture is also found to affect the development performance measurement system for the Central Government incentives and exploratory orientation. While the goals and objectives vagueness factors found not to influence. The study also founded that the development of performance measurement system in the Central Government by coercive isomorphism (coercive pressure) and normative isomorphism (normative pressure).