Costly and lengthy regulatory barriers, accompanied by sluggish markets, have long
been reasons for companies and their shareholders to look for alternatives to Initial
Public Offerings (IPOs). A popular alternative has often been to pursue backdoor listing
– often accomplished through a reverse merger, exchange offer, or rights offer, for
instance. Because backdoor listings are often not under the strict oversight of listing
rules and regulations, it is argued that they are prone to fraud and abuse. This report
provides four regulatory strategies for consideration by policy makers in Indonesia,
in order to support their efforts to improve listing and corporate governance standards.