The government has officially pursued an energy transition since at least 2021. However, various challenges continue to arise in its implementation, including the lack of transparency in Power Purchase Agreements (PPAs). This report examines and analyzes the impacts of PPA opacity and identifies the regulations that the government must consider in order to address this issue. The report uses a descriptive method supported by a statutory and conceptual approach.

The report shows that transparency in PPAs is essential to ensure a fair, efficient, and corruption-free early retirement of coal-fired power plants. Limited transparency increases the risk of conflicts of interest, deepens information asymmetry, and creates opportunities for corruption in both the selection of coal plants to be retired and the design of financial compensation schemes. This situation can undermine the trust of funders and financial institutions, as well as meaningful public participation in energy-related decision-making.