JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, 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 stated.

If implemented, the B40 required could increase biodiesel usage to up to 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL estimated to be consumed in 2024.

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

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to satisfy B40 demand, with set up capacity expected to rise to 20 million KL each year next year from 18 million KL now.

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

The biodiesel market would require 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 greatest palm oil association GAPKI stated a decline in exports meant there would be enough basic materials to provide the B40 required for now.

But the industry would need to assess "which one would be better", GAPKI chairman Eddy Martono said, describing the 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 anticipated to decrease by 2.47% to 29.5 million lots as domestic usage increased, driven by biodiesel mandate.

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