Objective: This study aims to analyze stakeholder participation in village fund (Dana Desa) management within Magetan Regency, Indonesia, by evaluating the operational scopes and structural salience of various actors within a decentralized public administration framework. Design/Methodology/Approach: A qualitative case study design was employed. Empirical data were collected through in-depth interviews, field observations, and institutional document analysis involving 57 key informants selected via purposive and snowball sampling techniques across village, district, and regency administrative tiers. Data were systematically analyzed using Creswell’s thematic analysis framework. Findings: Guided by Mitchell et al.’s Stakeholder Salience Theory and Burns et al.’s Ladder of Citizen Empowerment, this study identifies 23 distinct stakeholders operating across national, regional, and local scopes. The findings reveal a profound institutional paradox: excessive, uncoordinated oversight from macro-level audit bodies and law enforcement agencies generates severe administrative bottlenecks and institutional anxiety ("climate of fear"), while grassroots community members are structurally marginalized into passive roles. Originality/Value: This paper contributes to decentralization and public administration literature by proposing a novel Streamlined Stakeholder Participation Model. This model advocates removing redundant law enforcement entities from routine administrative loops, consolidating internal audits under a single local authority, and structurally elevating community members to Definitive Stakeholders. Practical/Policy Implications: The study provides actionable policy recommendations for regional administrators to reduce bureaucratic friction, alleviate legal fear among village apparatuses, and foster genuine grassroots empowerment in local fiscal governance