JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest 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 might increase biodiesel usage to as much as 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be ended up in December, so that full implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

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

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

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

Indonesia's most significant palm oil association GAPKI said a decrease in exports suggested there would be enough basic materials to provide the B40 required in the meantime.

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

Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% increase from last year, while exports are expected to decline by 2.47% to 29.5 million loads as domestic usage increased, driven by biodiesel required.

The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while planning to evaluate the B40 mix on farming machinery, 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)