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 said.

If executed, the B40 mandate could increase biodiesel intake to up to 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 ended up in December, so that complete application of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

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

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

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

Indonesia's most significant palm oil association GAPKI stated a decrease in exports implied there would suffice basic materials to supply the B40 required in the meantime.

But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make supplying the domestic market less practical.

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

The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati