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

If implemented, the B40 required could increase biodiesel consumption 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 carried out in 2025,” energy ministry senior main Eniya Listiani Dewi said in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) said the market had the capacity to meet B40 need, with set up capability expected to increase to 20 million KL every year 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 told Reuters on Wednesday.

The biodiesel industry would require 13.9 million metric heaps of unrefined palm oil to produce 16 million KL biodiesel next year, from the estimated 11 million loads required this year, he added.

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

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

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

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