JAKARTA, July 24 (Reuters) - Indonesia, the world's most significant palm oil producer, is testing 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 implemented, the B40 mandate could increase biodiesel usage to as much as 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 finished in December, so that full 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) said the industry had the capability to meet B40 demand, with set up capacity expected to increase to 20 million KL yearly next year from 18 million KL now.

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

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

Indonesia's greatest palm oil association GAPKI stated a decrease in exports indicated there would be adequate basic materials to supply the B40 required for now.

But the market 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 less viable.

Indonesia's palm oil output is approximated to reach 54.4 million tons in 2024, a 2.26% boost from last year, while exports are anticipated to decrease by 2.47% to 29.5 million heaps as domestic usage increased, driven by biodiesel required.

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