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This research aims to investigate, rationalize and identify the issue of legal protection for informal workers which is in the critical category. Therefore, this article is entitled Legal Protection for Informal Sector Workers in Employment Development in Indonesia: Challenges and Opportunities. The research method used is a normative juridical approach, document study, using qualitative methods in analyzing data and using secondary data as the source. The results of this research found that Law Number 6 of 2023 concerning the Determination of Government Regulations instead of Law Number 2 of 2022 concerning Job Creation into Law (Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang or UU 6/2023) does not regulate informal workers at all, so there is a vacuum in terms of legal protection for informal workers in Indonesia. Therefore, national legislation is needed regarding legal protection for informal workers, which essentially contains work agreements between employers and informal workers/labourers. In this way, the government and the legislature are expected to be able to establish regulations and legislation to protect informal and vulnerable workers amidst the increasing informalization of the labour market due to the impact of accelerated advances in information and communication technology.

This study aims to re-examine the issues that involve outreaching the urgency of labor law for informal sector workers in the concept of the welfare state in Indonesia. The research method used is a normative juridical approach or a study of documents or literature that only focuses on labor laws currently in force in Indonesia. The qualitative method approach that is descriptive-analytic is used to describe the relationship of a phenomenon, idea, data, or fact that is found objectively. This study found that the rights, dignity, standard of living, and even the working environment of informal sector workers are still neglected by labor law in Indonesia today. The national labor law has not accommodated legal protection, guarantees, and social security, so there is a legal vacuum for informal sector workers. This condition contradicts the philosophy of Pancasila and the constitution, the 1945 Constitution of the Republic of Indonesia. Thus, efforts to develop labor laws are expected to be carried out by the government together with the legislature to make all parties have the same position in the production process for the achievement of the company's progress. will have implications for national economic growth. On the other hand, this effort is expected to create legal harmonization in the field of employment in general and especially for informal sector workers in the welfare state in Indonesia.