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

If carried out, the B40 required could increase biodiesel consumption to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.

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

The Indonesian Biofuel (APROBI) stated the market had the capacity to meet B40 demand, 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 basic materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

The biodiesel industry would require 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 added.

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

But the industry would require to examine "which one would be more valuable", 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 estimated to reach 54.4 million heaps in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic usage rose, driven by biodiesel required.

The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the first time previously today, while preparing to check the B40 mix on farming equipment, 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)