JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is evaluating 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 mandate could increase biodiesel usage to as much as 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 completed in December, so that complete application of B40 might be carried out in 2025," energy ministry senior official Eniya Listiani Dewi stated in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to meet B40 demand, with installed capacity expected to rise 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 lots of oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he added.

Indonesia's biggest palm oil association GAPKI stated a decrease in exports indicated there would be sufficient raw products to supply the B40 required for now.

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 providing the domestic market less feasible.

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

The ministry had checked the biodiesel, combined with 40% of palm oil, on a train for the very first time previously this week, while planning to test the B40 mix on farming 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)