JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil mixed into biodiesel next year, the energy ministry stated.

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

"We hope the trials might be completed in December, so that complete implementation of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to fulfill B40 need, with installed capability anticipated to increase to 20 million KL annually next year from 18 million KL now.

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

The biodiesel industry would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he added.

Indonesia's most significant palm oil association GAPKI stated a decrease in exports meant there would suffice raw products to supply the B40 mandate in the meantime.

But the market would need to examine "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility an increase 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 usage increased, driven by biodiesel required.

The ministry had checked the biodiesel, mixed with 40% of palm oil, on a train for the first time earlier this week, while planning to check the B40 mix on agriculture 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)