JAKARTA, July 24 (Reuters) - Indonesia, the world’s biggest 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 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 ended up in December, so that full application of B40 could be performed 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 capacity to fulfill B40 demand, with set up to rise to 20 million KL annually next year from 18 million KL now.

“However we will require more basic materials to satisfy B40 need,” Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.

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

Indonesia’s most significant palm oil association GAPKI said a decline in exports indicated there would be enough basic materials to provide the B40 required for now.

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

Indonesia’s palm oil output is approximated to reach 54.4 million lots in 2024, a 2.26% boost from in 2015, while exports are anticipated to decline by 2.47% to 29.5 million heaps as domestic intake increased, driven by biodiesel mandate.

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