Providing infrastructure is one of the fundamental sectors that must be realized in the context of economic development so that general prosperity can be achieved. In its implementation, the Government has determined projects that fall into the National Strategic Project (PSN) category, the aim of which is to meet basic needs and improve community welfare. Kalimantan Island in particular has 13 projects with a total investment value of Rp. 240.3 trillion. Funding for basic infrastructure and connectivity projects comes from the government, government-private partnerships, state-owned companies and the private sector. One of the main regulations is the public-private partnership (PPP) policy, which allows BUMN and private companies to work together in developing strategic projects. Poor governance in state-owned enterprises hinders effective collaboration with private companies in the Balikpapan construction sector, primarily through capability, resource and politicization gaps that affect industry regulations, market competition and strategic alliances. This research uses a survey method to collect data using a questionnaire. Sampling was carried out using a non-probability method with a purposive sampling approach. The sample in this study consisted of 31 respondents who were company representatives or directors or top managers of private companies in Balikpapan City which formed alliances with other private companies when participating in National Strategic Projects. This research uses SEM-PLS with the SmartPLS 3.0 application tool. Based on the results of this study and the discussion that has been carried out, the following conclusions can be drawn: Industry regulation affects financial performance, industry regulation affects customer performance, industry regulation affects business process performance, industry regulation affects learning and growth performance, strategic alliance affects financial performance, strategic alliance affects customer performance, strategic alliance affects business process performance, strategic alliance affects learning and growth performance, market competition affects financial performance, market competition affects customer performance, market competition affects business process performance, market competition affects learning and growth performance, and overall that industry regulation, strategic alliance, and market competition have significant influence on perceived performance of private companies in Balikpapan construction sector.