JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil manufacturer, 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 stated.

If implemented, the B40 mandate might increase biodiesel usage 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 ended up in December, so that full execution of B40 could be carried out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to fulfill B40 demand, with set up capacity anticipated to rise to 20 million KL annually next year from 18 million KL now.

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

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

Indonesia's biggest palm oil association GAPKI said a decline in exports suggested there would be enough raw materials to provide the B40 required for now.

But the market would require 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 viable.

Indonesia's palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic usage increased, driven by biodiesel required.

The ministry had evaluated the biodiesel, with 40% of palm oil, on a train for the very first time previously today, while preparing to evaluate the B40 mix on agriculture machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati