JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, 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 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 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) stated the market had the capability to satisfy B40 need, with installed capability anticipated to increase to 20 million KL each year next year from 18 million KL now.

"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry 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 needed this year, he added.

Indonesia's greatest palm oil association GAPKI stated a decline in exports meant there would suffice raw materials to provide the B40 mandate in the meantime.

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

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

The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while preparing to test the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)