JAKARTA, July 24 (Reuters) - Indonesia, the world’s most significant palm oil producer, is evaluating 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 carried out, the B40 required might increase biodiesel intake to up to 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 completed in December, so that complete implementation of B40 could be brought out in 2025,” energy ministry senior main Eniya Listiani Dewi stated in a statement on Tuesday.

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

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

The biodiesel market would need 13.9 million metric loads of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million loads required this year, he included.

Indonesia’s most significant palm oil association GAPKI stated a decrease in exports implied there would suffice raw materials to supply the B40 mandate for now.

But the industry would require to evaluate “which one would be more valuable”, GAPKI chairman Eddy Martono said, 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 tons in 2024, a 2.26% increase from last year, while exports are anticipated to decline by 2.47% to 29.5 million lots as domestic intake rose, 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 today, while preparing to test the B40 mix on farming machinery, power plants and in the industry, it said. (Reporting by Bernadette Christina and Dewi Kurniawati