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 stated.

If implemented, the B40 required might increase biodiesel consumption to approximately 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 ended up in December, so that full implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to fulfill B40 need, with set up capability expected to rise to 20 million KL every year 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 require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads required this year, he added.

Indonesia's greatest palm oil association GAPKI stated a decline in exports suggested there would be sufficient basic materials to provide the B40 required for now.

But the market would require to assess "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less practical.

Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic intake rose, driven by biodiesel mandate.

The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time previously today, while preparing to check the B40 mix on farming machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)