JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is testing 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 executed, the B40 mandate might increase biodiesel intake to approximately 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 implementation of B40 might be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the industry had the capability to satisfy B40 demand, with set up capacity anticipated to rise to 20 million KL yearly next year from 18 million KL now.

"However we will require more raw materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

The biodiesel industry 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 needed this year, he included.

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

But the market would need to evaluate "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 practical.

Indonesia's palm oil output is estimated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are anticipated to decrease by 2.47% to 29.5 million lots as domestic intake rose, driven by biodiesel mandate.

The ministry had evaluated the biodiesel, combined with 40% of palm oil, on a train for the very first time earlier today, while planning to test the B40 mix on farming machinery, power plants and in the shipping market, it said. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)