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 combined into biodiesel next year, the energy ministry stated.

If executed, the B40 mandate could increase biodiesel intake 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 completed 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) said the industry had the capability to satisfy B40 demand, with installed capability anticipated to rise to 20 million KL each year next year from 18 million KL now.

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

The biodiesel market would require 13.9 million metric tons of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he added.

Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would suffice raw materials to provide the B40 mandate for now.

But the market would require to assess "which one would be more valuable", GAPKI chairman Eddy Martono said, referring to 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 tons in 2024, a 2.26% boost from last year, while exports are expected to decline by 2.47% to 29.5 million heaps as domestic intake rose, driven by biodiesel required.

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