
JAKARTA, July 24 (Reuters) - Indonesia, the world's biggest palm oil producer, is evaluating fuel with a view to increasing to 40% from 35% the share of palm-oil blended into biodiesel next year, the energy ministry stated.
If implemented, the B40 required might increase biodiesel consumption to as much as 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 full execution of B40 might be brought out 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 capability to fulfill B40 demand, with set up capacity expected to increase to 20 million KL yearly next year from 18 million KL now.
"However we will require more basic materials to fulfill B40 need," Ernest Gunawan, the secretary general of APROBI informed Reuters on Wednesday.
The biodiesel market would require 13.9 million metric lots of crude palm oil to produce 16 million KL biodiesel next year, from the approximated 11 million tons required this year, he included.
Indonesia's biggest palm oil association GAPKI said a decline in exports suggested there would suffice raw products to supply the B40 required in the meantime.
But the market would require to assess "which one would be more important", GAPKI chairman Eddy Martono said, describing the possibility a boost in exports would make providing the domestic market less viable.
Indonesia's palm oil output is estimated 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 loads as domestic consumption increased, driven by biodiesel mandate.
The ministry had tested the biodiesel, blended with 40% of palm oil, on a train for the very first time previously today, while planning to check the B40 mix on farming machinery, power plants and in the shipping industry, it stated. (Reporting by Bernadette Christina and Dewi Kurniawati; Writing by Stanley Widianto; Editing by John Mair, Savio D'Souza and Barbara Lewis)