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

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

"We hope the trials could be finished in December, so that full implementation of B40 might be performed in 2025,” energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 need, with set up capacity expected to rise to 20 million KL each year next year from 18 million KL now.

"However we will need more raw materials to satisfy B40 demand,” 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 approximated 11 million loads needed this year, he added.

Indonesia's greatest palm oil association GAPKI stated a decrease in exports implied there would suffice raw materials to supply the B40 required for now.

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

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

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