Tangerang Regency, Feb. 5 -- The Finance Ministry is targeting 40 companies operating in the steel sector that are suspected of failing to pay their Value Added Tax (VAT) obligations, potentially causing state losses of up to Rp5 trillion per year.

"So this is quite significant. When we look at as many as 40 companies, that is a substantial number. We estimate a reduction in state revenue of around Rp4-5 trillion. It is now time for companies to pay their taxes," Finance Minister Purbaya Yudhi Sadewa said in Tangerang, Banten, on Thursday.

Purbaya said the move was part of the government's commitment to plug tax leakages and ensure the companies fulfill their obligations.

"My staff will summon these companies to ensure they understand ...