I would use your suggested code, but with a slight simplification:
KeyGenerator keyGen = KeyGenerator.getInstance("AES");
keyGen.init(256); // for example
SecretKey secretKey = keyGen.generateKey();
Let the provider select how it plans to obtain randomness - don't define something that may not be as good as what the provider has already selected.
This code example assumes (as Maarten points out below) that you've configured your java.security
file to include your preferred provider at the top of the list. If you want to manually specify the provider, just call KeyGenerator.getInstance("AES", "providerName");
.
For a truly secure key, you need to be using a hardware security module (HSM) to generate and protect the key. HSM manufacturers will typically supply a JCE provider that will do all the key generation for you, using the code above.