JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant 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 stated.

If executed, the B40 required might increase biodiesel consumption to as much as 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 application of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to satisfy B40 demand, with installed capacity expected to rise to 20 million KL every year next year from 18 million KL now.

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

The biodiesel market would require 13.9 million metric tons 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 greatest palm oil association GAPKI said a decrease in exports indicated there would suffice basic materials to provide the B40 mandate in the meantime.

But the market would require to examine "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 estimated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are to decrease by 2.47% to 29.5 million lots as domestic intake rose, driven by biodiesel required.

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