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

If executed, the B40 required could increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be ended up in December, so that complete execution of B40 could be performed in 2025," energy ministry senior Listiani Dewi said in a declaration on Tuesday.

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

"However we will require more raw products to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

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

Indonesia's biggest palm oil association GAPKI said a decrease in exports implied there would be enough raw materials to provide the B40 mandate in the meantime.

But the industry would require to examine "which one would be more valuable", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% increase from last year, while exports are expected to decrease by 2.47% to 29.5 million tons as domestic intake rose, driven by biodiesel required.

The ministry had actually checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier this week, while preparing to evaluate the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati