In order to be competitive in the market, business organizations are forced to formulate strategy and implement it in the form of strategic initiatives in project management. This study examines the crucial role of project management office (PMO) practices in strategic initiative implementation, measured by the performance of banks taken from year 2014 to 2016. Empirical research was conducted through a survey, by using questionnaires to assess the contribution of PMO practices in managing strategic initiatives in Indonesian banks. A set of data from 74 top executives, representing 115 banks was collected. The variables for the strategic initiative implementation are project portfolio management capabilities, project management office practices, and performance of the banks reflected by their return on assets (ROA) analyzed and compared through Partial Least Square-Structural Equation Model method using SmartPLS 3.0 software. The results show that PMO practices have positively influenced the project portfolio management capabilities. Subsequently, the strategic initiative implementation which is influenced by project portfolio management capabilities has produced significant influence on the ROA.