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

If executed, the B40 mandate could increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be ended up in December, so that complete application of B40 could 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 fulfill B40 demand, with installed capacity anticipated to rise to 20 million KL yearly next year from 18 million KL now.

"However we will require more basic materials 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 needed this year, he included.

Indonesia's most significant palm oil association GAPKI stated a decline in exports implied there would suffice basic materials to supply the B40 mandate for now.

But the market would require to examine "which one would be more valuable", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make providing the less practical.

Indonesia's palm oil output is estimated to reach 54.4 million heaps 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 usage increased, driven by biodiesel mandate.

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