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 mixed into biodiesel next year, the energy ministry said.

If executed, the B40 required could increase biodiesel consumption 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 ended up in December, so that complete implementation of B40 might be brought out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to satisfy B40 need, with set up capability anticipated to increase to 20 million KL annually next year from 18 million KL now.

"However we will need more raw products to fulfill B40 demand," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

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

Indonesia's greatest palm oil association GAPKI said a decrease in exports meant there would be sufficient raw materials to provide the B40 required for now.

But the market would need to examine "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility a boost in exports would make providing the domestic market less feasible.

Indonesia's palm oil output is estimated to reach 54.4 million loads in 2024, a 2.26% boost from in 2015, while exports are to decrease by 2.47% to 29.5 million loads as domestic consumption rose, 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 check the B40 mix on farming machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati