Exports of Indonesian-made garments and textiles are expected to drop 20 per cent this year as its manufacturers have failed to upgrade or replace their outdated textile machinery, it was claimed on Thursday.

Indonesian Textile Association (API) chairman, Lili Asdjudiredja, said many producers were using machines made in the mid-80s and the delay in upgrading them had hurt the competitiveness of the country's textile industry.

He claimed plants were producing only 45 per cent of their installed capacity and called on the government to breathe new life into the industry as he expects clothing and textile exports to fall to around $6 billion this year compared to $7.6bn in 2001.

Lili also said rises in the costs of fuel and electricity had also increased many apparel firms' production costs.