JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, 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 could consumption to approximately 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 finished in December, so that full implementation of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

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

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

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

Indonesia's biggest palm oil association GAPKI stated a decrease in exports meant there would suffice basic materials to provide the B40 mandate for now.

But the industry would need to assess "which one would be better", GAPKI chairman Eddy Martono stated, referring to 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 loads in 2024, a 2.26% boost from last year, while exports are anticipated to decline by 2.47% to 29.5 million lots as domestic usage increased, driven by biodiesel mandate.

The ministry had actually evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while preparing 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)