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 blended into biodiesel next year, the energy ministry said.

If executed, the B40 mandate might increase biodiesel usage to up to 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 application of B40 might be carried out in 2025," energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capacity to fulfill B40 need, with set up capability expected to rise to 20 million KL annually next year from 18 million KL now.

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

The biodiesel industry would need 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he included.

Indonesia's biggest palm oil association GAPKI stated a decline in exports suggested there would be adequate raw materials to provide the B40 mandate for now.

But the market would need 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 practical.

Indonesia's palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from in 2015, while exports are expected to decline by 2.47% to 29.5 million loads as domestic usage rose, driven by biodiesel mandate.

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