The Principle of Welfare rechtstaat as a Fundamental Foundation in National Economic Development

Globalization has had a significant impact on the national economy, encouraging an innovative and competitive trading system. MSMEs contribute greatly to employment and increased import-export. The Indonesian government seeks to improve the quality of MSMEs through various support programs, including the establishment of the Job Creation Law. This research aims to examine the concept of the rule of law as a fundamental foundation of economic democracy and the principle of welfare reform in the growth of MSMEs, especially with regard to One Person Company. The research method used is qualitative with a normative juridical approach. The main data sources are related laws and regulations, as well as secondary legal and non-legal materials. Data analysis is done deductively. The concept of the rule of law as the basis of economic democracy regulates society to ensure legal certainty, equality, and human rights based on Pancasila and the 1945 Constitution of the Republic of Indonesia. In economic democracy, a populist economic system is used based on the principles of togetherness, equitable efficiency, sustainability, independence, and balance. The principle of welfare rechtstaat emphasizes the importance of social welfare to reduce economic inequality, with regard to the One Person Company as a new entity in the business world, according to the Job Creation Law, it is expected to be able to support the growth of an innovative and competitive investment climate.