Leadership is essential in promoting democratic citizenship; this is also true at the village government level. Using the experience of Panggungharjo Village, Bantul, this paper tries to understand the role of leadership in supporting the fulfillment of citizens’ rights within the context of Law 6/2014 on Villages. Based on interviews and field observations conducted between October and November 2016, this paper finds that transactional and transformational leadership approaches, conceptualised by Burns (1978) and applied in Panggungharjo, influence the effective provision of public service and welfare. When used complementary and strategically, the two leadership styles determine the effectiveness of village leadership and reform initiatives. Indeed, there is an issue of power that is crucial to take into account. In comprehending this important aspect, Lukes’s (1974, 2005) concept of power dimensions is helpful. His diagram of power consists of tangible power engineering (First Dimension), a new system of procedures that create barriers for potential political opponents (Second Dimension), and the enactment of new norms (Third Dimension). In Panggungharjo, the village head’s leadership, approach has been widely recognised as one of the success stories in Indonesian village governance. Nevertheless, the findings suggest that this effective and functioning government has led to leadership practice that has created citizens who are “beneficiaries†rather than “shapers and makers†(Cornwall & Gaventa 2001; Gaventa, 2002, 2004). This outcome may not optimally underpin active citizenship, as active citizens are a prerequisite to promoting democratic citizenship.