JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 said.

If carried out, 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 could be ended up in December, so that full application of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

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

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

The biodiesel market would require 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons needed this year, he included.

Indonesia's biggest palm oil association GAPKI said a decrease in exports suggested there would suffice raw products to supply the B40 mandate for now.

But the market would need to examine "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less viable.

Indonesia's palm oil output is estimated to reach 54.4 million tons in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million tons as domestic usage rose, driven by biodiesel mandate.

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