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This article shows how the Indonesian new developmental state addresses gender equality and women's empowerment in its effort to institutionalise a participatory approach in the state bureaucracy. It pays attention to the way the new developmental ideology has shaped participatory governance policy as an instrument of village development instead of deepening democracy and reworking the structure of traditional gender relations. Utilising qualitative data and a longitudinal monitoring study, this article argues that the new policy of participatory village governance has a narrow focus on village economy and infrastructure and ignores more sensitive issues, such as transforming the traditional gender structures.