JAKARTA, July 24 (Reuters) - Indonesia, the world’s most significant palm oil producer, is checking 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 required could increase biodiesel usage to approximately 16 million kilolitres (KL) next year, the ministry said, from 13 million KL estimated to be consumed in 2024.

“We hope the trials might be completed in December, so that full implementation of B40 could be performed in 2025,” energy ministry senior main Eniya Listiani Dewi said in a statement on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capability to satisfy B40 need, with installed capacity expected to rise to 20 million KL every year next year from 18 million KL now.

“However we will need more raw products to satisfy B40 need,” Ernest Gunawan, the general of APROBI told 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 tons required this year, he included.

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

But the industry would need to assess “which one would be better”, GAPKI chairman Eddy Martono stated, referring to the possibility an increase in exports would make providing the domestic market less practical.

Indonesia’s palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% increase from in 2015, while exports are expected to decrease by 2.47% to 29.5 million lots 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 first time previously this week, while planning to test the B40 mix on farming machinery, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati