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 combined into biodiesel next year, the stated.

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

"We hope the trials might be finished in December, so that complete execution of B40 could be brought out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a declaration on Tuesday.

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

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

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

Indonesia's biggest palm oil association GAPKI said a decrease in exports indicated there would be adequate raw products to supply the B40 mandate for now.

But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make providing the domestic market less viable.

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 decrease by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel mandate.

The ministry had actually tested the biodiesel, mixed with 40% of palm oil, on a train for the very first time earlier this week, while planning to evaluate the B40 mix on farming machinery, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati