JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest 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 said.

If executed, the B40 mandate could increase biodiesel usage to approximately 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 brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.

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

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

The biodiesel market would need 13.9 million metric tons of oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he added.

Indonesia's greatest palm oil association GAPKI said a decline in exports indicated there would suffice raw materials to supply the B40 mandate in the meantime.

But the market would require to examine "which one would be more important", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is approximated to reach 54.4 million heaps in 2024, a 2.26% boost from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel mandate.

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