JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is testing 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 said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be finished in December, so that full execution of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to satisfy B40 need, with installed capability anticipated to rise to 20 million KL yearly next year from 18 million KL now.

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

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

Indonesia's most significant palm oil association GAPKI stated a decrease in exports implied there would be enough raw materials to supply the B40 required for now.

But the market would need to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono said, referring to 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 heaps in 2024, a 2.26% boost from last year, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic consumption 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 this week, while planning to evaluate the B40 mix on agriculture 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)