The first coal-fired power project led by a Chinese private company kicked off construction on Monday in Indonesia's West Kalimantan province.

Kalbar-1 power station, a cooperation project between Indonesia Power, a subsidiary of Indonesian power utility Perusahaan Listrik Negara and China's Suzhou-based private company Golden Concord Holdings Ltd, is expected to reach an installed capacity of 200 megawatts when put into operation in 2020, GCL said on Wednesday.

GCL is the first private Chinese company to sign a power-purchase agreement with Indonesia, which is plagued by endemic electricity shortages.