JAKARTA, July 24 (Reuters) - Indonesia, the world’s most significant palm oil manufacturer, 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 implemented, the B40 mandate might increase biodiesel intake to approximately 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 execution of B40 could be brought out 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 fulfill B40 need, with installed capacity anticipated to rise to 20 million KL annually next year from 18 million KL now.

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

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

Indonesia’s greatest palm oil association GAPKI stated a decline in exports implied there would be sufficient basic materials to supply the B40 required in the meantime.

But the industry would need to evaluate “which one would be better”, GAPKI chairman Eddy Martono said, the possibility a boost in exports would make providing the domestic market less practical.

Indonesia’s palm oil output is estimated to reach 54.4 million loads 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 consumption increased, driven by biodiesel mandate.

The ministry had actually tested 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 equipment, power plants and in the shipping market, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati