JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, is checking 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 implemented, the B40 mandate could 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 could be completed in December, so that complete execution of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a on Tuesday.

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

"However we will require more raw products to satisfy 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 heaps required this year, he included.

Indonesia's most significant palm oil association GAPKI stated a decline in exports implied there would be enough raw materials 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, describing the possibility an increase in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million lots as domestic intake increased, driven by biodiesel required.

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