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

"We hope the trials could be completed in December, so that complete application of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

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

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

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

Indonesia's biggest palm oil association GAPKI stated a decrease in exports meant there would be adequate raw materials to supply the B40 required in the meantime.

But the market would need to examine "which one would be better", Eddy Martono said, describing the possibility an increase in exports would make providing the domestic market less practical.

Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million loads as domestic usage 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 today, while preparing to test the B40 mix on farming 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)