JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, 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 mandate could increase biodiesel consumption to up to 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 finished in December, so that complete application of B40 might be carried out in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

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

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

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

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

But the industry would need to evaluate "which one would be more valuable", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make supplying the domestic market less feasible.

Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million tons as domestic intake increased, driven by biodiesel required.

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 test the B40 mix on farming equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)