The French company, along with Indonesia's independent energy company International Power, said it started operations at the Paiton 3 plant on Java Island.
The company said the facility "will be the first super-critical coal unit in Indonesia and the largest generating unit on the Java-Bali grid."
Indonesia's membership to the Organization of the Petroleum Exporting Countries was suspended when it became a net importer in 2009.
The U.S. and Indonesian governments last May examined the potential for investing in oil, natural gas and renewable energy.
The U.S. State Department had said Indonesia under a Millennium Challenge Corp. compact could get around $600 million during the next five years for investments in environmentally sustainable green prosperity.
GDF Suez owns 70 percent of International Power.