As a developing country, Indonesia is facing problems regarding lecturer performance. This study was intended to provide empirical evidence among variables related lecturer performance and to investigate the effect of reward system, lecturer satisfaction and commitment on lecturer performance in higher education institutions in Indonesia. A closed ended questionnaire was administered to collect data and 750 questionnaires were distributed by using snow ball sampling method to public and private universities in Indonesia. About 347 questionnaires were returned and could be further analyzed. Respondents were required to indicate their level of agreement on various items with a five-point scale. Path analysis was employed to test research hypotheses. Independent t-test and Anova test were also conducted to investigate the differences impact demographic data on the variables being examined. This research found that higher reward system, lecturer commitment and lecturer satisfaction significantly improve lecturer performance in higher education institutions in Indonesia. The findings and limitations are discussed and recommendations for education policy makers and researchers are also provided.  

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