A leading textile official on Tuesday warned Indonesia's garment industry will collapse in two years unless apparel firms and the government take urgent action to secure its future amid "security problems".

The deputy chairman of the country's textile association, Djadin Djamaluddin, said the industry had been in trouble for several years with textile exports in the first half of 2002 plunging to $7 billion from $7.6bn in 2001.

He told Asia Pulse a serious lack of overseas investment was the main reason the industry was in such a poor state, and cited concerns over "security" as the primary reason for a shortage of foreign investors.

He added that ministers needed to restore international confidence in Indonesia's clothing and textile sectors if the industry was to survive beyond 2004.