That is a cable-actuated mechanical drum brake. That is a 2nd gen Baja Doodle Bug, most of which had a cable-actuated mechanical disc brake but some had a drum. To convert to a hydraulic disc brake, you will need a different wheel, a brake rotor, a hydraulic caliper, a master cylinder, a brake hose, hardware, and you will need to weld on a caliper mount. A Mega Moto MM-B80/105 or Coleman CT100U wheel and rotor should work. I would guesstimate around $150 in parts. Check GPS for parts.
https://www.gopowersports.com/minibike/brakes/
https://www.gopowersports.com/minibike/wheels/
Here's a pic of a disc brake 2nd gen DB.
https://c.shld.net/rpx/i/s/i/spin/image/spin_prod_245423001