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

If implemented, the B40 mandate could increase biodiesel usage to approximately 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 ended up in December, so that complete implementation of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to satisfy B40 need, with set up capability expected to increase to 20 million KL every year next year from 18 million KL now.

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

The biodiesel industry would require 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.

Indonesia's greatest palm oil association GAPKI stated a decline in exports indicated there would be adequate raw materials to provide the B40 required in the meantime.

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

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

The had tested the biodiesel, combined with 40% of palm oil, on a train for the very first time previously today, while preparing to test the B40 mix on agriculture machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati