The Financial Services Authority's Regulatory Role in Backdoor Listings in Indonesia

Abstract

Efforts that a limited liability company can make to increase profits and the existence of its business are to become a public company. IPO requirements, which are complicated and require many costs, are an obstacle experienced by companies wishing to list their shares on the stock exchange. To overcome this problem, business people have found various strategies to gain profits in the capital market, like public companies, but without going through the IPO mechanism. Backdoor listing is a company listing its shares on the stock exchange without going through the IPO process. Otoritas Jasa Keuangan has been declared an independent institution that supervises financial institutions, both banks and non-banks. Supervision of capital markets and the non-bank financial industry, which the Ministry of Finance previously carried out through Bapepam-LK (Capital Market and Financial Institution Supervisory Agency), has officially shifted to the OJK. To carry out a public offering, the issuer must first obtain "permission" from the OJK by submitting a registration statement. The Backdoor listing process does not have a clear legal umbrella, so there is no standard reference for the procedures carried out, whereas compared to an IPO, which has a definite legal basis, has wide circulation, and is strictly supervised by the competent authorities. This study aims to determine the role of the OJK in regulating the implementation of backdoor listing in Indonesia, which is then examined using normative juridical methods with statutory and conceptual approaches.  The results of this study are that it is hoped that the government, especially the OJK, will make special regulations regarding the implementation of backdoor listing.