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

If carried out, the B40 required might increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

"We hope the trials could be ended up in December, so that complete application of B40 could be brought out 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 meet B40 need, with set up capability expected to increase to 20 million KL yearly next year from 18 million KL now.

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

The biodiesel market would require 13.9 million metric loads of unrefined palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads needed this year, he added.

Indonesia's biggest palm oil association GAPKI stated a decrease in exports suggested there would suffice basic materials to supply the B40 required in the meantime.

But the industry would require to assess "which one would be better", GAPKI chairman Eddy Martono said, referring to the possibility an increase in exports would make supplying the domestic market less feasible.

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

The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier today, while planning to evaluate the B40 mix on agriculture 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)