Cost information is important for efficiently allocating healthcare expenditures, estimating future budget allocation, and setting user fees to start new financing systems. Indonesia has a very high number of COVID-19 cases. Because of new instances, Indonesia requires information on the cost of COVID services, one of which is information on the cost of COVID-19 treatment medicine. This study assesses the cost of medical services for COVID-19 patients in public and private hospitals based on the severity from the provider's perspective. This study also analyses variations in the price of COVID-19 treatment medicine based on the type and class of hospital to allocate and manage the budget appropriately. A hospital-based cross-sectional study was conducted in 9 public and 7 private hospitals spread across 5 provinces in Indonesia for the financial year 2020. The activity-based costing method was applied to calculate the unit cost of the cost of drugs for inpatient covid-19 treatment per episode of disease according to severity. Costs are calculated using Microsoft Excel 2010. The differentiating factor for patient care in hospitals for COVID-19 patients is the severity level. The average cost of medicine for COVID-19 patients with mild symptoms in government hospitals is IDR. 734,305.5, moderate symptoms IDR 1,685,200.25, severe symptoms IDR 6,126,585.6 and with critical condition IDR 3,035,938.3. The average variation in the cost of medicine for treating COVID-19 patients in private hospitals is high in each hospital class for the same severity of illness. The average cost of COVID -19 treatment drugs for patients with mild symptoms is IDR 1,782,489, moderate symptoms IDR. 2,527,738.6, severe symptoms of IDR. 2,229,679.5 and in critical condition IDR. 15,331,045.5. The cost of COVID-19 treatment drugs is influenced by the flow of COVID-19 treatment, length of stay, type of hospital, hospital class, and severity of illness. There is a wide variation in the average cost of medicine for treating COVID-19 patients in hospitals, both styles, and types of hospitals at the same severity level. The average treatment price for COVID-19 patients in private hospitals is more expensive than in government hospitals for mild, moderate, and critical conditions. However, the average cost of medicine for COVID-19 patients with severe symptoms is more costly at government hospitals compared to private hospitals.