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 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 could be finished in December, so that complete application of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to meet B40 need, with installed capacity anticipated to rise to 20 million KL each year next year from 18 million KL now.

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

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

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

But the market would require to evaluate "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make supplying the domestic market less feasible.

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

The ministry had actually evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while planning to test the B40 mix on agriculture equipment, 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)