JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is checking 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 executed, the B40 mandate 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 completed in December, so that full application of B40 could be brought out in 2025," energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

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

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

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

Indonesia's biggest palm oil association GAPKI said a decrease in exports implied there would suffice basic materials to provide the B40 mandate for now.

But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing 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 expected to decrease by 2.47% to 29.5 million heaps as domestic consumption increased, driven by biodiesel mandate.

The ministry had checked the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while planning to test the B40 mix on agriculture equipment, power plants and in the shipping industry, it stated. (Reporting by and Dewi Kurniawati