JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry said.

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

"We hope the trials could be finished in December, so that full implementation of B40 could be performed in 2025," energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

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

"However we will need more basic materials to satisfy B40 need," Ernest Gunawan, the secretary general of APROBI informed 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 greatest palm oil association GAPKI stated a decline in exports implied there would be enough raw products to supply the B40 required in the meantime.

But the market would need to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make providing the domestic market less practical.

Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% boost from last year, while exports are expected to decline by 2.47% to 29.5 million tons as domestic consumption increased, driven by biodiesel mandate.

The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time previously this week, while planning to evaluate the B40 mix on agriculture equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)