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

If implemented, the B40 mandate might increase biodiesel intake to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.

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

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to satisfy B40 demand, with installed capacity expected to increase to 20 million KL yearly next year from 18 million KL now.

"However we will need more raw materials to satisfy 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 tons required this year, he included.

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

But the market would need to examine "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make supplying the domestic market less viable.

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 lots as domestic usage rose, driven by biodiesel required.

The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while planning to check the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)