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

If executed, the B40 mandate might increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be finished in December, so that full application of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to meet B40 need, with set up capability expected to rise to 20 million KL annually next year from 18 million KL now.

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

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

Indonesia's biggest palm oil association GAPKI said a in exports indicated there would be enough basic materials to supply the B40 mandate in the meantime.

But the industry would require to examine "which one would be more important", GAPKI chairman Eddy Martono said, referring to 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 expected to decrease by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel required.

The ministry had actually checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to check 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)