JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil producer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry stated.

If carried out, the B40 mandate might increase biodiesel consumption to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.

"We hope the trials could be finished in December, so that complete application of B40 could be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to satisfy B40 need, with installed capacity anticipated to increase to 20 million KL each year next year from 18 million KL now.

"However we will need more raw materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

The biodiesel industry would require 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads needed this year, he included.

Indonesia's most significant palm oil association GAPKI said a decline in exports indicated there would suffice raw products to supply the B40 mandate in the meantime.

But the market would require to examine "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility an in exports would make providing the domestic market less practical.

Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million heaps as domestic usage increased, driven by biodiesel mandate.

The ministry had actually tested the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while preparing to check the B40 mix on agriculture equipment, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati