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 combined into biodiesel next year, the energy ministry said.

If carried out, the B40 required might increase biodiesel intake 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 might be ended up in December, so that full application of B40 could be brought 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 demand, with set up capability expected to rise to 20 million KL each year next year from 18 million KL now.

"However we will require more raw 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 lots required this year, he added.

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

But the industry would need to examine "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing 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 in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel required.

The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while planning to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it stated. (Reporting by and Dewi Kurniawati