JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is evaluating 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 implemented, the B40 mandate could increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

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

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

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

The biodiesel market would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million heaps required this year, he added.

Indonesia's biggest palm oil association GAPKI said a decline in exports indicated there would be adequate raw products to provide the B40 mandate for now.

But the industry would need to assess "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make supplying the domestic market less viable.

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

The ministry had actually checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on agriculture machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati