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

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

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

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

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

The biodiesel industry would need 13.9 million metric lots of oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he added.

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

But the industry would need to evaluate "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 loads in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million loads as domestic usage increased, driven by biodiesel required.

The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to check the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati