Abstract: The purpose of this paper is to describe the extent to which Indonesia's ability to deal with the Covid-19 pandemic outbreak in Indonesia The Corona virus outbreak or commonly known as Covid-19 is getting more and more violent. The virus thought to have originated in the Chinese city of Wuhan has claimed many lives. Not only in the bamboo curtain country, countries on the continent of Europe, Asia, America and Africa are also affected by this virus, including Indonesia. World Health Organization (WHO) has designated COVID-19 as a pandemic. This pandemic has spread in 212 countries. Quoting from Worldometers, there were 3,911,454 people in the world infected with the corona virus, the death toll from the SARS-CoV-2 virus reached 270,339 people. While those who recovered were recorded as many as 1,340,231 as of Friday. The Covid 19 pandemic has also weakened global economic growth, due to economic downturns. People in countries that have implemented lockdowns or social distancing have paralyzed the country's economy, many industries have closed and even laid off their employees. The impact is that the decreasing income of the lower middle class, especially workers and daily businesses, which are large in number, will quickly trigger a social contraction. Before the Corona outbreak alone, Indonesia had a potential crisis, due to Indonesia's dependence on imported goods to meet domestic consumption. This research is qualitative in nature by looking at the facts and existing data both from direct observation and from various electronic media. In the conditions of the Covid 19 pandemic, the Indonesian government established a Large-Scale Social Restriction (PSBB) policy with a social - physical distincting approach. , not by lockdown. This policy was taken by the government with economic considerations and the state's ability to worry about being unable to provide for the basic needs of the community during the Karatina region as mandated by Law no. 6 of 2018 concerning health quarantine. Meanwhile, the PSBB policy is considered not optimal in handling this pandemic outbreak because it is considered unable to cut the spread of the Covid 19 virus.