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

If executed, the B40 mandate might increase biodiesel consumption 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 might be completed in December, so that complete application of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capability to fulfill B40 demand, with anticipated to rise to 20 million KL every year next year from 18 million KL now.

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

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

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

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 feasible.

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

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