"It is the best energy project in the Indonesian power plant construction history so far," said Hatta Rajasa, coordinating minister of economy in Indonesia, referring to a power plant project built by Chinese companies.

The project, the Indramayu coal-fired power plant with a total generation capacity of 1,000 megawatts (mW), was one of the earliest projects in the 10,000 mW fast-track power construction program created by the Indonesian government to ease local electricity shortages.

Located in West Java, which suffered a 30 percent power shortage, the project was completed on Oct 12 after four years' construction by China National Electric Engineering Co Ltd (CNEEC).

Ahmad Heryawan, the governor of West Java, said the project has helped 70 percent of the families and manufacturers in the region come out of the power shortage.

Rajasa said the Indonesian government plans to ensure that every island in the country has sufficient power supply by the end of 2014, which will require an annual increase in capacity of 3,000 mW.

"We welcome China's continued participation in power project construction in our country," he said. "The development of Indonesian industry depends heavily on energy support, as it will make us more competitive globally."

According to the government, Indonesia is preparing the second 10,000 mW power program and the country currently still has a power shortage of 35,000 mW.

"It is very likely that we will continue to cooperate with Chinese companies on the projects for the second power program," said Dahlan Iskan, president director of PT Perusahaan Listrik Negara (PLN), the Indonesian state-owned power utility and also the owner of the first power plant's projects.

PLN is the owner of the Indramayu project while the contractor of the project is a consortium composed of China National Machinery Industry Co Ltd (Sinomach), CNEEC and a local Indonesian company.

The Indonesian 10,000 mW power plant program is a good example of bilateral cooperation. The completion of the first project has shown the competitiveness of China's equipment manufacturing and engineering technology, said Wang Shengwen, deputy director with the Department of Outward Investment and Economic Cooperation of the Ministry of Commerce.

He said that Chinese companies should make full use of the business opportunities created by the China-ASEAN Free Trade Area and increase investment in Indonesia.

According to the ministry, bilateral trade has grown by an average of 22.8 percent annually since 2000. In 2010, bilateral trade reached $42.75 billion. More than 1,000 Chinese companies have established factories in Indonesia with a total investment of more than $6 billion, creating more than 3,000 jobs. Meanwhile, Indonesia's investment to China has reached $2 billion.

"The Chinese government will keep supporting domestic companies to participate in infrastructure construction including roads, bridges, harbors, power plants and the communications sector in Indonesia," said Wang.

"Meanwhile, we hope that the Indonesian government can provide policy support to Chinese companies for more investment."

Indramayu power plant is the first project which was constructed with Chinese financing.

Zhang Weidong, executive vice-president of the China Export & Credit Insurance Corp, said the company has been leading financing negotiations involving many power plants in Indonesia, amounting to $4 billion.

"We plan to expand cooperation with the Indonesian government and local companies in more future projects," he said.

Zhang said some Chinese companies are holding talks with Indonesian officials and companies to develop the second power program. "They may invest, build and operate these power plants, becoming a shareholder instead of merely a contractor."

Ren Hongbin, chairman of Sinomach, said the company sees Indonesia as a strategic market.

"We have participated in many local infrastructure projects in Indonesia in recent years," said Ren.

The project is a successful example of the overseas business model of Sinomach and also a turning point in CNEEC's overseas development, said Zhao Ruolin, president of CNEEC.

CNEEC built a mosque near the power plant for local workers to pray during the construction period. Zhao said it is important to show such respect to local people's faiths and habits. "We are not only focusing on particular projects but also the potential of the market here," said Zhao.