Jakarta. The government will pay back hospitals an additional Rp 25 trillion ($1.7 billion) for allocating beds for Covid-19 patients last year, Health Minister Budi Gunadi Sadikin said on Monday.

Hospitals across the country were encouraged to share at least 20 percent of their beds for Covid-19 patients and promised financial incentives amid a dramatic surge in new cases due to the Delta variant last year. 

The total cost shouldered by private and state hospitals in treating Covid-19 patients was estimated at around Rp 90 trillion but the government still owed them Rp 25 trillion due to budget constraints.

“There is now a budget for that and [the reimbursement] is being finalized,” Budi said in a news conference.

“We are coordinating with the Finance Ministry and the Rp 25 trillion debt will be repaid soon,” he said without mentioning when.

There were 1.7 million Covid-19 patients hospitalized under government financial subsidies throughout 2021, according to Health Ministry data.

In addition to hospital subsidies, the government also allocated Rp 12 trillion in financial bonuses for medical workers on a monthly basis last year.

Budi said all but the December 2021 bonus have been channeled to medical workers.

“Hopefully we can pay them in full this month,” he said.