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 blended into biodiesel next year, the energy ministry stated.

If carried out, the B40 required might increase biodiesel usage to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials could be completed in December, so that complete application of B40 might 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 market had the capacity to satisfy B40 need, with set up capacity anticipated to rise to 20 million KL every year next year from 18 million KL now.

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

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

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

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

Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic consumption increased, driven by biodiesel required.

The ministry had 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 machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati