JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is evaluating 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 implemented, the B40 required might 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 might be completed in December, so that full application of B40 might be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to satisfy B40 demand, with set up capacity expected to increase to 20 million KL each year 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 market would need 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he added.

Indonesia's most significant palm oil association GAPKI said a decline in exports indicated there would be adequate raw materials to provide the B40 mandate in the meantime.

But the industry would require to examine "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make supplying the domestic market less viable.

Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from last year, while exports are expected to decrease by 2.47% to 29.5 million heaps as domestic intake increased, driven by biodiesel mandate.

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