The OP said something about "Indonesia" which should have been warning enough...!
My wife and I had sold stuff on ebay for several years (not so much lately; turns out our return on items such as kids books wasn't worth the effort, though other odd items were profitable) without any fraud problems. Maybe had a non-paying bidder a few times, but again, no large ticket items. And the few times we actually bought something (games for the kid, etc.) all went well.
Now here is a funny story from a few years back that incorporates both CL and ebay:
We occasionally checked Craigslist for local garage sales so we could buy items to resell on ebay. One guy here in SoCal who was holding a garage sale listed (among other things) a vintage view camera. So since he had books and a camera, both of us were interested.
So we go to the sale, got some giveaway books and old newspapers (which was nice) and maybe my wife bought some books. I asked about the camera since I didn't see it. The guy went into the house and got it. Said he had sold it on ebay but the buyer never paid.
I forget the name of it but it was about 100 years old, in decent shape (a folding wooden view camera and large brass lens). I think I paid the guy $35 for it.
So I list it on ebay, and began getting bids. Suddenly, I get this angry, irate email from a guy in Canada who says, "Yeah, that sure was a rare find, but it's MY camera!" He sent along a copy of an older ebay auction proving he had purchased it from the garage sale guy, and never received it. The auction photos and details did indeed match up (!).
Obviously I was in a bit of a bind. I bought the thing in good faith. But now I see someone else had also paid for it. I did have the option of saying "Too bad", but felt this would cause trouble with my own auction since the original buyer would probably step in and contact my bidders. Not to mention the bad vibes.
I decided to reimburse the guy in Canada what he paid for the camera, $42 IIRC (turns out he actually made a bit on the deal since he already got some reimbursement from whatever payment method he had used, but I missed that detail at the time). I went on to sell the camera for over $100 (for a decent profit, all told).
Crazy story, but it ended well.
Oh, from checking out other ebay auctions posted by the garage sale guy I determined he had stiffed some other folks on ebay too – I remember seeing their paid-for-and-not-shipped items at the garage sale too. So I contacted them and referred them to the guy. I think he disappeared after that; I haven't looked for him lately. He was also selling property on Craigslist...
So yeah, I think I would avoid ebay purchases except for small items and use reputable dealers such as those mentioned earlier or local folks. And you do know they own Paypal? That explains their preference for it. (We never had any problems with PP on ebay, and still use it for other transactions, but tend to keep a low amount of cash on the card just in case something weird happens.)