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 stated.

If carried out, the B40 mandate could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be ended up in December, so that full execution of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 demand, with installed capacity anticipated to rise to 20 million KL every year next year from 18 million KL now.

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

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

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

But the industry would require to evaluate "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 feasible.

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

The ministry had actually tested the biodiesel, combined with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on farming equipment, 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)