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

If executed, the B40 required could increase biodiesel usage to as much as 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 full implementation 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 market had the capability to meet B40 need, with installed capacity expected to rise to 20 million KL every year next year from 18 million KL now.

“However we will require more basic materials to fulfill B40 demand,” Ernest Gunawan, the secretary general of APROBI told Reuters on Wednesday.

The biodiesel market would require 13.9 million metric lots of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million lots required this year, he included.

Indonesia’s most significant palm oil association GAPKI said a decline in exports suggested there would suffice basic materials to provide the B40 mandate in the meantime.

But the industry would require to examine “which one would be better”, GAPKI chairman Eddy Martono said, referring to the possibility a boost in exports would make supplying the domestic market less feasible.

Indonesia’s palm oil output is to reach 54.4 million loads in 2024, a 2.26% boost from in 2015, while exports are expected to decrease by 2.47% to 29.5 million loads as domestic consumption rose, driven by biodiesel mandate.

The ministry had actually tested the biodiesel, blended with 40% of palm oil, on a train for the very first time earlier this week, while preparing to check the B40 mix on agriculture machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati