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 mixed into biodiesel next year, the energy ministry said.

If carried out, the B40 required could 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 complete application of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.

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

"However we will require more raw products to meet B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

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

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

But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono stated, referring to 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 heaps in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million tons as domestic usage rose, 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 and Dewi Kurniawati