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

If implemented, the B40 required might increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials might be completed in December, so that complete execution of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

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

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

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

Indonesia's greatest palm oil association GAPKI said a decrease in exports meant there would be adequate basic materials to provide the B40 mandate for now.

But the industry would require to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make providing the domestic market less practical.

Indonesia's palm oil output is approximated to reach 54.4 million heaps 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 increased, driven by biodiesel mandate.

The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while preparing to evaluate the B40 mix on agriculture equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati