Abstract: This research aims to learn on how to develop company performance appraisal sistems in business sector that is highly limited by government regulations. The object of study is PT XYZ that is running business in commercial explosives production and distribution in Indonesia. The performance appraisal will be developed based on Balanced Scorecards (BSC) concept. The objectives of the research is analyzing the internal factor and external factor of the company, and developing a strategy map based on the BSC perspectives, and developing performance appraisal system for the company. Company strategy components such as vision, values and main strategy will be integrated in to the process to get final appraisal systems that is in line with internal company values and capable to support the company to overcome the external challenges.The benefit of this research is to assist the company in developing a strong and solid internal system in order to be able to run the explosive business on an ongoing basis.Customer perspectives is the most prioritized items in the appraisal systems in this type of business due to limited number of customers, high volatility of the customer business situation which is mining industry and high level of business competition. Customer prespectives is also represent most of external factors including how the company anticipate the business regulation changes whichs is oftenly unpredictable.