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 mixed into biodiesel next year, the energy ministry said.

If carried out, the B40 mandate might increase biodiesel usage 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 might be finished in December, so that complete application of B40 could be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

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

"However we will require more basic 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 tons of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps required this year, he added.

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

But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make providing the domestic market less practical.

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

The ministry had actually tested the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier this week, while planning to test the B40 mix on farming equipment, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)