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Economic democracy is a concept that was initiated by the founders of the Indonesian state (the founding fathers) to find a proper form of economy and in accordance with the character of the Indonesian nation. Economic democracy is an economic activity that is carried out from the people, by the people and for the people. Economic democracy prioritizes public welfare, not the welfare of each individual. The concept of the welfare state in line with the concept of the modern constitutional state is the antithesis of the classical law of the country, the task of the state is no longer solely to maintain defense and security, but also the public welfare. Indonesia is a State law, as stated in Article 1 paragraph (3) of the 1945 amendments to the third . State law adopted in Indonesia is not in a formal sense, but rather in the sense of material that is also termed the welfare state (welfarestate) or a state of prosperity ". Goals to be achieved by the Indonesian state is the realization of a just and prosperous society both spiritually and materially equitable based on Pancasila. In fact, the principle of economic democracy that is consistent with the concept of the welfare state which aspires welfare still be achieved. One cause is due to the failure of the welfare state in favor, especially in favor of a particular group.
Kata kunci: demokrasi ekonomi, negara kesejahteraan