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

If executed, the B40 required might increase biodiesel to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be completed in December, so that complete execution of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.

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

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

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

Indonesia's greatest palm oil association GAPKI stated a decline in exports meant there would suffice basic materials to provide the B40 required for now.

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

Indonesia's palm oil output is estimated to reach 54.4 million loads 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 checked the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously today, while preparing to evaluate the B40 mix on agriculture 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)