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

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

"We hope the trials could be finished in December, so that complete execution of B40 might be performed 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 demand, with set up capacity expected to increase to 20 million KL yearly next year from 18 million KL now.

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

The biodiesel market would need 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million lots required this year, he added.

Indonesia's most significant palm oil association GAPKI said a decline in exports indicated there would suffice raw materials to provide the B40 mandate in the meantime.

But the industry would require to examine "which one would be more valuable", Eddy Martono said, describing the possibility an increase in exports would make supplying 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 decline by 2.47% to 29.5 million lots as domestic intake rose, driven by biodiesel required.

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