JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil manufacturer, 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 intake 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 finished in December, so that complete application of B40 could be performed in 2025," energy ministry senior official Eniya Listiani Dewi said in a statement on Tuesday.

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

"However we will need more raw 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 approximated 11 million tons needed this year, he added.

Indonesia's biggest palm oil association GAPKI said a decrease in exports indicated there would suffice raw products to provide the B40 required in the meantime.

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

Indonesia's palm oil output is estimated to reach 54.4 million heaps in 2024, a 2.26% increase from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million loads as domestic intake increased, driven by biodiesel mandate.

The ministry had tested 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 machinery, 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)