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

If implemented, the B40 required might increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials could be ended up in December, so that complete application of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to satisfy B40 need, with installed capacity expected to rise to 20 million KL each year next year from 18 million KL now.

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

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

Indonesia's greatest palm oil GAPKI stated a decrease in exports indicated there would be adequate raw products to provide the B40 required for now.

But the industry would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, 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 tons in 2024, a 2.26% increase from in 2015, while exports are expected to decline by 2.47% to 29.5 million tons as domestic consumption rose, driven by biodiesel required.

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