JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest 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 mandate might increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be in 2024.

"We hope the trials might be ended up in December, so that complete execution of B40 could be brought 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 need, with set up capability anticipated to rise to 20 million KL annually next year from 18 million KL now.

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

The biodiesel market would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads needed this year, he included.

Indonesia's most significant palm oil association GAPKI stated a decline in exports suggested there would suffice basic materials to supply the B40 mandate in the meantime.

But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, describing 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 lots in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million heaps as domestic usage rose, driven by biodiesel required.

The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while planning to test the B40 mix on agriculture machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati