JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is testing fuel with a view to increasing to 40% from 35% the share of palm-oil combined into biodiesel next year, the energy ministry stated.

If executed, the B40 required might increase biodiesel intake to up to 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 implementation of B40 might be carried out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

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

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

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

Indonesia's most significant palm oil association GAPKI said a decline in exports suggested there would suffice basic materials to provide the B40 required in the meantime.

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

Indonesia's palm oil output is approximated to reach 54.4 million loads 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 intake increased, driven by biodiesel mandate.

The ministry had checked the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while preparing to evaluate the B40 mix on farming equipment, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)