JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest 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 implemented, the B40 required could increase biodiesel consumption to as much as 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

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

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

"However we will require more raw products to satisfy B40 demand," 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 estimated 11 million loads needed this year, he included.

Indonesia's most significant palm oil association GAPKI said a decline in exports meant there would be adequate basic materials to supply the B40 mandate in the meantime.

But the market would require to evaluate "which one would be more important", 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 tons in 2024, a 2.26% increase from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million heaps as domestic consumption rose, driven by biodiesel required.

The ministry had evaluated the biodiesel, mixed with 40% of palm oil, on a train for the very first time previously today, while planning to evaluate 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)