PurposeThis study investigates partnership building between non-governmental organisations (NGOs) and the regencies of Gunung Kidul, Bantul, Sleman, Yogyakarta Province and Indonesia's central government. This study focuses on the perspective of the collaboration theory to reflect the usefulness of different leadership types. Furthermore, this study identifies the impact of partnership building on program effectiveness.Design/methodology/approachThis study uses an instance case study with thirteen informants who are NGO activists or members of the village, district and provincial governments. This study concludes that NGOs and local government partnerships have reached a collaborative level, characterised by their stakeholders' unity, regular communication, mutual trust and consensus in decision-making.FindingsThis collaborative relationship also shows the integrative leadership style, characterised by openness and active networks with all external parties. Furthermore, this study identifies that partnership building positively impacts and increases the outcomes, especially in capacity building and commitment. Finally, this research proposes a series of innovative policies through stakeholder mapping, forming joint forums, sharing responsibilities and accentuating intimate partnerships.Originality/valueThis research is unique in the following ways: First, this study argues that partnership building occurs due to a specific social contract between a local government and an NGO. The authors show that this contract occurs when a local government possesses innovativeness. Local governments know which programs are not financed from the central budget. They accent their innovativeness for increasing society's welfare by collaborating with an NGO. Second, local governments realise that building partnerships with NGOs is no longer an option but an obligation. This study considers the similarity objectives of providing the best services they can to the community, with the differentiation of the capacities and resources owned by both. Third, this study demonstrates that partnerships between NGOs and governments positively impact communities' development in emerging economies with all the obstacles that exist.