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 consumption to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be ended up in December, so that complete execution of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

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

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

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

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

But the industry would require to examine "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less practical.

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 expected to decrease by 2.47% to 29.5 million heaps as domestic usage rose, driven by biodiesel required.

The ministry had checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously this week, while planning to evaluate the B40 mix on agriculture 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)