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 combined into biodiesel next year, the energy ministry stated.

If carried out, the B40 required could increase biodiesel intake to approximately 16 million kilolitres (KL) next year, the ministry stated, from 13 million KL approximated to be consumed in 2024.

"We hope the trials could be completed in December, so that complete implementation 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) stated the industry had the capability to meet B40 need, with set up capacity anticipated to increase to 20 million KL yearly next year from 18 million KL now.

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

The biodiesel industry would need 13.9 million metric tons of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million heaps needed this year, he added.

Indonesia's biggest palm oil association GAPKI stated a decrease in exports implied there would suffice raw materials to supply the B40 mandate for now.

But the market would require to evaluate “which one would be better”, GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make supplying the domestic market less viable.

Indonesia's palm oil output is to reach 54.4 million loads in 2024, a 2.26% increase from last year, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic intake rose, driven by biodiesel mandate.

The ministry had checked the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to test the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati