JAKARTA, July 24 (Reuters) - Indonesia, the world’s greatest palm oil manufacturer, is checking 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 executed, the B40 required could increase biodiesel consumption to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

"We hope the trials could be finished in December, so that complete application of B40 might be performed in 2025,” energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the industry had the capacity to meet B40 demand, with set up capacity anticipated to rise to 20 million KL each year next year from 18 million KL now.

"However we will need more basic materials to satisfy B40 demand,” Ernest Gunawan, the secretary general of APROBI informed 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 loads needed this year, he included.

Indonesia’s most significant palm oil association GAPKI stated a decline in exports implied there would suffice raw products to supply the B40 required in the meantime.

But the industry would require to examine “which one would be better”, GAPKI chairman Eddy Martono said, describing the possibility an increase in exports would make the domestic market less practical.

Indonesia’s palm oil output is approximated to reach 54.4 million loads in 2024, a 2.26% boost from last year, while exports are expected to decrease by 2.47% to 29.5 million lots as domestic consumption increased, driven by biodiesel required.

The ministry had evaluated the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while planning to evaluate the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati