Indonesia's textile and apparel exports are expected to fall around 10 per cent this year to $7.2 billion, concerned bosses of the Indonesian Textile Association (API) predicted on Thursday.

Spokesman Indra Ibrahim said the slump was seen as many textile and garment factories were only operating at 40 to 50 per cent of their installed capacity and they had failed to upgrade their machinery and technology.

Recent trade figures showed textile and clothing exports fell 13.2 per cent to $2.26bn in the first four months of this year compared to the year-ago period, with industry chiefs calling for government action to boost competitiveness.

"Many factories have even ceased or reduced production because of weak demand and falling prices in the world market," Ibrahim said.