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

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

"We hope the trials might be completed in December, so that complete 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) stated the market had the capacity to meet B40 need, with installed capability expected to increase to 20 million KL yearly 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 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 heaps required this year, he added.

Indonesia's biggest palm oil association GAPKI stated a decrease in exports meant there would suffice raw products to supply the B40 mandate in the meantime.

But the industry would require to examine "which one would be more important", GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make providing the domestic market less viable.

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 expected to decrease by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel required.

The ministry had actually evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while preparing to test the B40 mix on farming equipment, power plants and in the shipping industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati