JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is testing 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 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 completed in December, so that full application of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

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

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

The biodiesel market would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he included.

Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would be adequate raw products to supply the B40 required 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 providing the domestic market less viable.

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 decrease by 2.47% to 29.5 million heaps as domestic intake rose, driven by biodiesel mandate.

The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while preparing to test the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati