Indonesia will likely continue to dominate the Asian coal market at least until 2020, despite the government's policy of directing more coal supplies to the domestic market, an international coal business company has said.

In a report issued at an Asian coal conference held Tuesday in Jakarta, British-based trade publisher and consultant to the international coal business, McCloskey, said that with its massive coal reserves, Indonesia would be the only coal producer that could fulfill the expected surge in future coal demand in the region.

Coal demand in Asia would continue to increase over the 13 years up to 2020 due to an increase in coal usage in most Asian countries, including India, China, and South Korea, McCloskey was quoted Wednesday by the Jakarta Post as saying.

India's coal imports were projected to increase by almost sixfold to 29 million tons this year from 5 million tons in 2006.

The opening of new power stations in South Korea would also drive demand, which is expected to increase to 64 million tons this year from only five million tons in 2006. Malaysia will also increase its imports to 14 million tons in 2007 from 1.5 million tons the year before.

McCloskey said that another important factor that would strengthen Indonesia's position as Asia's largest coal exporter, and which is believed to have estimated coal deposits of around 63 billion tons, was the fact that China, also one of world's major coal producers, would further cut its coal exports.

In order to be able to benefit from the opportunities, the Indonesian government should strive to increase production by offering investors a more attractive mining policy, the company said.

Indonesia, the world's largest coal exporter, is expected to produce 183 million tons of coal this year, about 134 million tons of which would be exported. Next year, production is projected to increase to 198 million tons, about 145 million of which will be exported.

Based on government estimates, total coal production will reach 320 million tons in 2020, 170 million tons of which will be allocated for domestic use, while the remaining 150 million tons will be exported.

In 2025, coal production is expected to increase to 370 milliontons, of which about 220 million tons will be allocated for domestic use.