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 carried out, the B40 required might increase biodiesel consumption to up to 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 implementation of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capacity to fulfill B40 need, with set up capability expected to increase to 20 million KL annually next year from 18 million KL now.

"However we will require more raw products to fulfill 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 tons needed this year, he included.

Indonesia's most significant palm oil association GAPKI said a decline in exports suggested there would suffice raw materials to provide the B40 required in the meantime.

But the industry would require to assess "which one would be more valuable", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less feasible.

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 expected to decrease by 2.47% to 29.5 million tons as domestic intake increased, driven by biodiesel mandate.

The ministry had actually evaluated the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously this week, while preparing to test the B40 mix on farming machinery, 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)