JAKARTA, July 24 (Reuters) - Indonesia, the world's greatest palm oil manufacturer, is evaluating 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 implemented, the B40 might increase biodiesel intake to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials might be finished in December, so that complete implementation of B40 might be brought out in 2025," energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to satisfy B40 need, with set up capability expected to increase to 20 million KL each 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 informed Reuters on Wednesday.

The biodiesel market would need 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads needed this year, he added.

Indonesia's biggest palm oil association GAPKI said a decline in exports suggested there would be sufficient basic materials to supply the B40 required in the meantime.

But the market would require to evaluate "which one would be better", GAPKI chairman Eddy Martono stated, describing the possibility an increase in exports would make providing the domestic market less viable.

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

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