JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 executed, the B40 mandate might increase biodiesel intake 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 might be finished in December, so that complete application of B40 could be performed in 2025," energy ministry senior official Eniya stated in a statement on Tuesday.

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

"However we will require more basic materials to fulfill 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 tons needed this year, he added.

Indonesia's greatest palm oil association GAPKI stated a decline in exports meant there would be enough raw materials to provide the B40 mandate in the meantime.

But the industry would need to examine "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility an increase 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 in 2015, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic consumption rose, driven by biodiesel required.

The ministry had actually checked the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while preparing to check the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati