JAKARTA, July 24 (Reuters) - Indonesia, the 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 said.

If implemented, the B40 mandate could increase biodiesel consumption to up to 16 million kilolitres (KL) next year, the ministry said, from 13 million KL approximated to be consumed in 2024.

“We hope the trials might be completed in December, so that complete execution of B40 might be brought out in 2025,” energy ministry senior main Eniya Listiani Dewi stated in a declaration on Tuesday.

The Indonesian Biofuel Producers Association (APROBI) stated the market had the capability to fulfill B40 demand, with set up capability anticipated to increase to 20 million KL annually next year from 18 million KL now.

“However we will require more raw products to satisfy B40 need,” 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 needed this year, he included.

Indonesia’s biggest palm oil association GAPKI stated a decline in exports suggested there would suffice basic materials to provide the B40 mandate for now.

But the market would need to assess “which one would be better”, GAPKI chairman Eddy Martono stated, describing the possibility a boost in exports would make supplying the domestic market less viable.

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

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