This paper discusses challenges and obstacles that teachers and students face in the application of the virtual-based distance-learning process in Indonesian universities. The main focus of this study was on teachers’ and students’ readiness to face obstacles of virtual learning, and understand the preparedness and policymaking by the higher education ministry. A mixed-method research paradigm was used to collect the data through questionnaires and response sheets from teachers and students from 20 Indonesian higher education institutions. A total of 250 respondents, 150 teachers, and 100 students, participated in this research. For the purpose of analysis, the researchers calculated percentages based on the number of respondents for each of the options. Simple statistical procedures were used to compare the responses by both groups of respondents. The results showed that though there are intervention programs like ‘independent campus’ in most universities, the teachers still lack learning support devices; secondly, there is no standard policy or a common virtual platform for virtual learning processes, thirdly, it is very difficult to assess seriousness level of students with regard to the online teaching material provided.