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

If executed, the B40 required might increase biodiesel consumption to approximately 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 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to fulfill B40 need, with set up capability anticipated to increase to 20 million KL every year next year from 18 million KL now.

"However we will require more basic materials to meet B40 demand," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

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

Indonesia's most significant palm oil association GAPKI said a decline in exports suggested there would be sufficient basic materials to provide the B40 mandate in the meantime.

But the market would require to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less feasible.

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

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