The Top 7 Overlooked E-bay Success Tips

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by: Jamie Sloan

Last year alone, millions of people made a profit on e-bay. Some were just selling odds and ends, while some ran huge businesses exclusively on e-bay. The amount of commerce done on the internet is only expected to increase, making prospects for e-bay users bright. You very well may be one of the people who's discovered the great benefits of making money from e-bay auctions. I myself have been an e-bay user for a little over a year and have had great success with my auctions.

When my friend began her business on e-bay selling high end purses, it started out quite rocky. Her auctions weren't getting the hits she wanted and usually sold off of one bid, instead of creating the bidding frenzy that beautiful bags like she had should have!

So, she called me up knowing I had been successfully using e-bay for almost a year at the time. She gave me her login information (we're best friends- she trusts me!) and asked me to check her her sales and current auctions and see if I noticed where the problem was. When I saw her current auctions, alot became obvious!

So, I compiled a list of things that I had used which had made me successful which I suggested she implement into her own auctions. I even revised the auctions she had active at the time. One of those auctions- a gorgeous brown Coach purse- sold for $546.00. She had listed it for $125.00. It was her biggest sale yet and she was thrilled.

The funny thing is, the methods I use are not some internet guru secrets. They are just things I picked up during my time using e-bay, but seem to be overlooked alot of the time. Here are what I have found to be the top 7 overlooked tips for successful e-bay auctions:

1. The Importance of a Good Title- When you're creating a title for your auction, you've gotta think like a buyer. When I checked my friend's listings, she had a beautiful, brand new brown patchwork Coach purse titled as 'coach purse'. This is way too general! A buyer knows what they want; in your title, include color, any brand name, main keywords that people will search, and condition is possible. I changed her title to "Brown & Beige Patchwork Coach Purse-Brand New". By the next day, it had over 100 new hits. Previously her auctions were hardly even reaching 100 hits throughout the whole 5 days.

Another mistake people often make is writing things like 'The best wristwatch ever!!!!" Even if you do believe you're selling the best wristwatch ever, is this really what a buyer is searching for? Of course not. Use a more descriptive, detailed title like 'Gold Armani Wrist Watch w/ Leather Band-New".

One more thing when it comes to titles: make sure keywords are included. For example, whatever the item you're selling actually IS, include that in the title. On e-bay, I mostly sell high end women's heels. I always make sure to include in my title 'Womens Shoes" because this is a common keyword. An example of a title I would use is:

"Brown Marc Jacobs Womens Silver Stud Pumps Shoes"- I know that 'pumps shoes' sounds awkward, but many women will search for "marc jacobs womens shoes", and I want to be sure my item shows up in the results. Use these tips when creating your title and you'll be sure to see increased traffic to your auction.

2. Give honest descriptions- Sure, that stain, tear, or other defect may be sooo small that it's almost impossible to notice. Still, mention it in your auction. If you send an item out and a buyer realizes that the item has a defect that you didn't mention in the auction description, they will be disappointed and very possibly leave you negative feedback. Anyone familiar with e-bay knows that feedback is everything. It is what makes people feel comfortable buying from you and proves that you are a trustworthy, reliable buyer.

It's best to provide a photo of any defects so potential buyers can see what they're getting. And believe me, if you say that there's a defect but don't show a picture, people will e-mail you asking for some. I have sometimes had a defect so tiny on a shoe that I couldn't even get it to show up in a picture. If that's the case, say it! Provide a picture of the area where the defect is and also explain in your listing that it's so miniscule that you can't get it to show up in the picture. Buyers will trust you much more and be way more willing to buy from you in the future. You also won't have to deal with an unsatisfied customer who can damage your feedback rating and make future potential buyers hesitant or even completely dissaude them from buying from you.

3. Offer International Shipping- So often I see sellers who are providing great products but don't offer international shipping. Let me tell you- about 30% of my sales are to international buyers, and very often international buyers will pay more for products. I never understood why people are restraining their own sales potential by not offering international shipping.

Remember, the buyer is the one who pays the shipping, not you!! Even though international shipping is expensive, you are not paying it! And don't be discouraged thinking sending things internationally is difficult- it's super simple and not much different then sending things within the country. If you use USPS (the method I find most efficient for prices and service), you may have to fill out a short customs sheet that takes no more than a minute. Don't be lazy! Offer international shipping and see your sales soar!

4. Send a Thank You card with your purchase- You can get packs of black decorative cards from any general store, WalMart, or even discount chains like TJ Maxx. Buy a couple packs and with people's packages, send a nice thank you card.

You don't have to write a dialog, just a simple "Name of Buyer, Thanks so much for your bid! Enjoy your purchase, and I hope to do business with you in the future! Your Name or Business Name" If you want to really go all out and rake in some super feedback, include a small free gift. When I sell a pair of shoes I usually include a free headband or pair of earrings. If you'd like to try this out, try to find something that compliments whatever it is that you're selling. You could also include a little bag of candy or some tea light candles (go to the dollar store for great knick knacks and free gift ideas). Use your imagination to make your customers satisfied and loyal!

5. Offer combined shipping Buyers love combined shipping. If you offer a good combined shipping deal, and have more than one item they're interested in, they're ten times more likely to buy both items. Some people choose to determine combined shipping depending upon the two items the buyer is interested in, while others have set shipping rules. A good example is to charge $_.__ for the first item and offer to send the second item free, or for $1.00-$2.00 more. Usually the additional weight of the package isn't much so it's possible to offer combined shipping without losing any profit at all. Determine your own rates depending on the weight of the items you sell and the shipping service you use.

6.Keep communication with Buyers open and offer more pictures upon request. Of course in your listing you must include good pictures to attract buyers. Most people include 2-4 pictures per listing, depending on the size of the items and any special details you've got to show. I always include at least 3 pictures, and more if I feel the item needs more pictures of some detail it has that is unique.

Even though you have already provided your buyers with good pictures, it's helpful to write in your listing "Contact me with any questions or for more pictures. (with your contact info)" This is another method that makes buyers instantly trust you more and feel more comfortable placing bids. They feel that the communication lines are open and that they can get more info on the item if needed. And don't be discouraged thinking that you'll spend the whole day responding to e-mails requesting more photos; If you've already included good pictures, most people won't bother asking for more. Of over 50 listings where I've written this, only one person ever asked me for additional pictures. Check your e-mail though at least once a day to see if you've got any questions, people love quick responses and will reward you with good feedback for your effective communication.

7. Always use Delivery Confirmation- This is a biggie! Make sure that when you post your shipping costs, delivery confirmation costs are included so buyers aren't questioning the extrra expense when they receive their invoice. Delivery confirmation is a cheap effective way to ensure both your own and the buyer's investment.

First of all, you do not want to get scammed. What? Scammed? Yes, it happens. I know that most of the scamming referred to on e-bay is about sellers who scam their buyers, but don't be naive; we sellers are also at risk. Although the majority of the e-bay community is good people who are just trying to conduct legitimate transactions, there are those rotten apples which make it hard for all of us.

The usefulness of delivery confirmation was brought to my attention my an acquaintence of mine who does some selling on e-bay. He sold some very high quality digital remote for around $250.00. He shipped the item using delivery confirmation, and after about a week told me he received an e-mail from the buyer saing she'd never received the product. She filed a whole complaint with e-bay and made a big fuss about it. GOOD THING he had the delivery confirmation number and was able to prove that the product had been shipped to her address. Don't let one of these scammers get a chance to cheat you out of your money.

Making delivery confirmation a requirement is also something that will make serious bidders trust you more and see that you're a legitimate business person who wants to secure shipment. Think about it; if someone requests NOT to use delivery confirmation, you can guess where their intentions are. The extra .75 is not breaking anyone's piggy bank, so don't feel bad about it.

There you have it! Use these highly useful yet highly overlooked tips to generate more traffic to your auctions and enjoy higher sale prices. To e-bay success!

7 Surefire Ways To Increase Your Traffic Starting Yesterday

by: Terry Leslie

Internet. Business. Profit. To fully integrate all of these words into a successful merging you will need another word. Traffic. Every article you will find about making your site or company successful would always include the importance of generating traffic.

So, we all know that in the core of it all, traffic is the most essential thing to a successful internet based business company. Aside from ensuring that you have a great product to sell, and you have your company’s internal organization well taken core of, it would be time to get to the nitty gritty of things, generating traffic.

If you already have a site and you want think that you're not getting the traffic that you're supposed to be getting, then its time to reconsider. If you are contending in these very competitive business, you should always be a step ahead of your competition, increasing your traffic flow should have been done starting yesterday.

Timing is essential, that’s an old adage known to everyone. But with generating traffic, you should always be on your toes and be a day ahead of everyone. Never think of today and tomorrow as a starting point for making your site traffic laden, it should always have been yesterday.

To help you out in generating more traffic for your site, here are some seven surefire ways to increase your traffic starting from yesterday.

1) Invest in good advertising with search engines

Google’s Adwords and Yahoo’s Overture provide great advertising schemes that are very truly popular and assures great traffic. Although with this surefire way to increase your traffic would cost some money. While some would shy away from spending money to increase traffic, it is imperative in this case to do so because Adwords and Overture is the top surefire way to increase your traffic.

You could see for yourself the success this search engine advertising methods have reaped rewards for so many companies. Lots of site feature these advertising system and many have signed on to reap the benefits. Do not be left behind. Every penny is worth it with using Google and Yahoo’s advertising.

2) Exchange or Trade Links with other sites

With exchanging links with other sites, both of you will benefit from the efforts both of you do to enhance your sites traffic. When one site features another sites link, they could provide one another with the traffic one site generates. The efforts are doubly beneficial because it would seem like both of you are working to generate more traffic. The more links traded with more sites the more traffic could be expected.

3) Use Viral Marketing

Viral marketing allows you to spread the word about your company and product without any costs or if ever low costs only. This is a marketing method that can be quite sneaky; you can attach your company’s name, product or link to a certain media such as a funny video, entertaining game, an interesting article or a gossip or buzz. With this method, people get infected with the creativity and entertainment of the medium that they will pass it on to many people.

4) Search and use proper keywords or keyword phrases for your sites content

Search engines look for certain keywords that they would show in their results page. In doing so, having the right keyword and keyword phrase is a high requirement in ranking in high in search engine results. You could write your own content or you could hire someone to do it for you.

5) Write Articles that can lead traffic to your site

Submit articles to sites that would contain the same subject that your site deals in. If you sell car parts write press releases and articles about cars and car parts. Attach your sites description and services at the end of the article as well as the link.

6) Join forums and form online communities

Capture a market and show your expertise and credibility. When you found a good foundation for your site, people will trust you and your site and will pass on to many people their trust. Traffic will certainly increase because they know that you can provide what they need.

7) Lastly, Offer newsletters.

If many people know what you are about and your existence is shared with many others, you will find a loyal traffic that can provide you with more traffic by recommendation. If you arouse the curiosity of your customers they would be pushed to help you with your traffic.

In the mean time, Good Luck on your journey to success…

A choice between and humanity

A choice between morality and humanity

Soe Tjen Marching

Why was pornography prohibited in Indonesia? If you tell me that it was done in the name of morality, I completely agree. But if you tell me that it was in the name of humanity, hang on a second.

Because morality and humanity in Indonesia are two different things, and sometimes they are not related whatsoever. Here, morality seems to be a principle considered crucial, indispensable and rather holy.

Therefore the sources of morality like state ideology Pancasila and the 1945 Constitution cannot be touched, no matter how irrelevant some of the chapters are for the contemporary world.

Doesn't morality have huge authority? And for this very reason, morality can be a powerful means of control.

The consideration that morality is indispensable and eternal has also seen only selected people know about morality.

It no longer belongs to the people of Indonesia but to merely the powerful ones.

The people only become the slaves, who nod their heads like kindergarten kids being taught to memorize Pancasila.

Hence, a tyrannical government is not the one who forgets morality.

On the contrary: they are the one who are persistent with the existence of morality.

How pushy Soeharto has been with the morality of Pancasila so that it was forced upon to anyone.

Indeed, in this confusing world, morality is a means of people to control life: the fast and easy bypass which doesn't need to be questioned much.

In Beyond Good and Evil, Nietzsche believes morality is merely human ambitions to control others.

The feelings that we are right and they are wrong make humans become God-like, and judge or even punish others.

In the name of morality, rules are constructed for human, but vice versa, so that morality does not respect humans but hates them and even make them enemies.

How many people have been sacrificed for the sake of morality?

In the name of Pancasila morality, millions of people were murdered between 1965-1969.

In the name of religious morality, women were accused of being witches and burnt alive in European Middle-Ages.

In the name of Christian morality, crusades were initiated.

In the name of national morality, women's navels become an enemy.

But don't forget: the morality of our nation (called an archipelago in the past) had also been condemned by the Europeans, and for this reason, they felt they had the right to convert the people and even to colonize them.

The persistence in morality often makes people see differences as something to be scolded: We are more moral than you, because you don't walk along the same path as we do.

Such fear of "foreign" culture is reflected in the draft anti-pornography bill, which is soon to be legitimized by the government.

It mentions the impact of globalization can influence the pornographic action, spread and use, as well as immoral and obscene actions in society.

This can threaten the national identity and the social way of life of the Indonesian people.

But how about all of the female laborers who have been ripped-off by multinational companies? Why haven't they been mentioned? Haven't they been victims of globalization?

Yes, this is the danger: the persistence in morality is nothing but a method of hiding the fear against more powerful force.

Criticizing globalization by chasing women with lipstick and mini-skirts is indeed far easier than challenging huge and powerful companies with zillions of dollars.

Opting morality rather than humanity can indeed be a lot more beneficial for the government.

They seem to be doing something for the country by implementing some rules.

But what they are doing are merely cowardly acts of punishing the powerless and letting the powerful slip away and freely rip-off their own people.

Well, wasn't that what the Pharisees did a long-long time ago? They bowed to the authority of Herod while trying to stone Mary Magdalene, a woman who was victimized by the injustice of the King, and trying to make a living by selling her body?

When this "prostitute" approached Jesus, all Jesus' students chased her because their morality didn't allow them to accept her.

However, with humanity, Jesus welcomed her. And for his humanity, Jesus was finally punished.

Do we want our country to repeat this kind of history?

Really, Indonesia is rich with morality, rules and laws. Really, we should stop talking about morality and start talking about humanity.

I no longer believe in morality in Indonesia, because I'd rather believe in humans with all their commotions, differences, and passions which seem chaotic but somewhat beautiful.

The writer is author of The Discrepancy between the Public and the Private Selves of Indonesian Women. She can be reached at smarching@yahoo.com.

Climate change threatens peace

Climate change threatens peace

Meidyatama Suryodiningrat

The history of conflicts provoked by environment resource competition are as long and frequent as savagery in the name of God.

The global community is slowly awakening to the impacts of climate change on human conflict.

While apocalyptic scenarios have been scripted on the long term consequence of environmental omission, the immediate threat is much more imminent.

Even before we reach the end count of these dire predictions, the environmental changes occurring in the meantime generate political-security risks for which most governments are ill prepared.

Climate change has thus far been examined mostly under the context of an environmental or economic issue. Few nations have begun to seriously assess the strategic challenges which will occur.

U.S. defense analysts describe the ramifications of climate change as a "threat multiplier of instability".

Even though the Bush administration held out to the Kyoto Treaty, its military planners and politicians were quick to draft contingencies on the security challenges of climate change.

Three years ago the U.S. National Intelligence Council already included global warming as a part of its five-yearly outlook of potential global flashpoints.

The Center for Naval Analysis recently published a lengthy report on the threat of climate change to national security.

In March 2007 a bipartisan bill -- the Global Climate Change Security Oversight Act -- was submitted to Congress and described climate change as "a clear and present danger" to U.S. security.

Britain has also begun to lay the analytical security framework to review these challenges.

Apart from commissioning key studies like the Stern Report, its climate change research office -- the Met Office Hadley Centre -- is funded by the Ministry of Defense, along with the Department for Environment, Food and Rural Affairs.

Then British Foreign Secretary Margaret Beckett in a move which is redefining the concept of security, in April raised climate change issue at the UN Security Council.

She argued unstable climate risks are some of the drivers of conflict, hence warranting the Security Council's attention.

"Climate change is transforming the way we think about security," she said.

Canada is worried about its sovereignty on an ice-free Northwest Passage which countries like China, Russia and the United States claim is an international strait.

Russia has made feral claims to half the North Pole in anticipation that melting ice caps will make it easier to exploit the huge reserve of oil there.

These countries realize beyond the economic and environmental impacts, new trends in climate change will force realignment in state relations.

Living in a region which will be greatly affected by global warming, Indonesia must conceptualize strategic and defense thinking to face these new threats.

Rising sea levels will effect coastal areas in the Asia Pacific, across which some five million people live in low lying coastal perimeters.

Scientists believe a 50-centimeter rise in sea levels will cause a 50-meter coastline retreat in low-lying areas.

As a country with the world's third largest coastline (54,700 kilometers) and with 85 percent of its population living within 100 kilometers of the coast, the shifting demographics likely to occur in Indonesia caused by rising seas is precarious.

One of the first contingencies Indonesia must prepare in the coming decade is the chaotic events of a large-scale displacement of people.

Imagine rising sea levels inundating traditional coastal farming areas such as those in Karawang and Subang regencies, while low lying basins like Citarum could see cropland flooded.

Large shifts in migration almost always bring societal tensions.

A second challenge is one to our territorial waters.

If Indonesia was so worried about the creeping jurisdiction of Singapore's land reclamation projects, has the country also begun auditing the loss of strategic islands due to rising seas which may alter the borders recognized in the archipelagic concept?

Let us not forget State Minister of Environment Rachmat Witoelar's foreboding remark last year: 2,000 small islands could be submerged in two decades.

The Kyoto Protocol and the Climate Change Conference in Bali are worthy preventive measures to reduce climate change. But occur it will.

As a country saddling global warming's equatorial tension belt, Indonesian security thinkers need to invest in ideas which ultimately provide security-based policy options to contain likely tensions and shifting regional power trends before it is too late.

The author, a staff writer with The Jakarta Post, is currently studying at Harvard University as a research fellow with the Weatherhead Center for International Affairs.

Tentang MUI

M. Dawam Rahardjo: Defending the nation's religious minority groups

The Jakarta Post , Jakarta | Sat, 05/19/2007 8:02 AM | Life

Alpha Amirrachman, Contributor, Jakarta

During a discussion aired by a Jakarta radio station on August 4, 2005 veteran Muslim activist M. Dawam Rahardjo blatantly attacked the Indonesian Council of Ulemas (MUI) for declaring Ahmadiyah teachings as hearsay.

He said MUI had no right to declare such fatwa or religious edicts that discriminate against minority groups.

He also regretted said fatwa had led to many Ahmadiyah members being attacked and their houses of worship destroyed by provoked rioters.

The discussion, however, turned ugly when some hardliners in the studio audience stood up, approached Dawam and threatened him with violence unless he stopped talking.

But Dawam has always stood firmly beside his principles.

On April 17, 2006, Dawam led hundreds of members of the National Alliance for Freedom of Religion and Belief in their march to the Ministry of Religious Affairs to protest the minister's stance on Ahmadiyah.

The minister said Ahmadiyah was a danger to the spirit of tolerance across the nation.

Dawam not only defended Ahmadiyah, he showed support for other minority groups, including Komunitas Eden, whose leader, Lia Aminudin, claims to be the manifestation of Gabriel.

Dawam visited her when she was detained at the Jakarta Police detention house and attended her court proceedings at Central Jakarta State Court.

And when Komunitas Eden activist M. Abdul Rachman was detained at Salemba prison in East Jakarta, Dawam sent him a copy of his book (published by Kompas) to boost Abdul's morale.

The book is a short story about the group's activism and its struggle to find the truth.

A group of hardliners staged protests in front of Kompas daily, claiming Dawam's short stories insulted Islam.

""Tolerance is a key to peace, brotherhood and progress,"" Dawam said during the launch of this book.

""Tolerance will not weaken our own belief, it will instead encourage us to understand and accept others,"" he said during the launch which was also in celebration of his 65th birthday.

His tolerant attitude, however, does not come for free.

""Many of my old friends at the Association of Indonesian Muslim Intellectuals (ICMI) left me because they regard pluralism as a threat.

""Many wrongly accuse me of becoming a follower of Ahmadiyah or Komunitas Eden.

""I merely defend their existence and respect for what they believe,"" he said.

Born on April 20, 1942 in Baluwarti, Solo, Central Java, Dawam's interest in literary was developed when his aunt Ba'diyah would tell him stories after his Koranic lessons, including Hikayat Amir Hamzah and Flash Gordon.

His father Muhammadiyah, as well as his teacher and entrepreneur Zuhdi Rahardjo, never hesitated to spend money on Dawam's books.

Dawam was educated in Bustanul Athfal Muhammadiyah and later Madrasah Ibtidaiyyah Muhammadiyah at Masjid Besar Solo.

In the morning he attended the first grade of public school Al Robithoh al-Allawiyah.

He later continued his study at public elementary school Loji Wetan in the morning and Madrasah Diniyah Al-Islam in the afternoon; Junior High School and Senior High School in Manahan.

His first poems were published in Harian Abadi and he mingled with many writers, including Kustiowismo, Aslamah Jasin, Sogijono, Abdul Nur Adnan, Lasti Fardani, Ken Suheni, Darmanto Jatman, Elrlanda Rosi Ds., Husin Landicing, Jussac MR.

Some of these writers ""disappeared"" after 1965 due to their involvement in Indonesian Communist Party's cultural wing Lekra.

Dawam was later awarded the American Field Service (AFS) fellowship to study in Borah High School in Idaho, U.S., among others, due to his involvement in PII (Indonesian Islamic Student) association.

But instead of becoming a poet and after distancing himself from many of his friends involved in Lekra, Dawam enrolled at Faculty of Economics at Gadjah Mada University where he was involved intensively in Islamic Students Association (HMI).

He established a Marxism Study Club with Arief Budiman, Sritua Arief and Farchan Bulkin.

After completing his degree in economics, he stayed at Bank of America for two years as a trainee officer.

He switched to renowned research institute LP3ES, where Nono Anwar Makarim was director.

He was further involved in many grassroots development projects supported by Friederich Naumann Stiftung.

At the age of 38, Dawam became its director.

He edited and wrote several scholarly works during his time at LP3ES including Insan Kamil: Konsepsi Manusia Menurut Islam (Insan Kamil: Human Conception according to Islam (1985), Pergulatan Dunia Pesantren: Membangun Dari Bawah (The Struggle of Pesantren: Development from the Grassroots), Esai-esai Ekonomi Politik (Essays on Economics and Politics) (1983), Pesantren dan Pembaharuan (Pesantren and Modernism) (1984), and Perekonomian Indonesia: Pertumbuhan dan Krisis (Indonesia's Economy: Growth and Crisis (1987).

Dawam was awarded a professorship from Muhammadiyah Malang University in 1993 and was involved in the formation of ICMI. He became rector of Universitas Islam '45 (UNISMA).

Scholar Franz Magnis Suseno said Dawam's spirit for tolerance developed because he viewed religion as not theory or ideology, but a force to lift up those who are marginalized and exploited.

The mushrooming of non-government organizations in the 1980s is inseparable from Dawam's struggle to introduce and implement ""people's economy"".

It is because of his colorful career as an Islamic and NGO activist and trained economist -- as well as his evolving perspective toward religions -- that Dawam has evolved into a genuine pluralist who defends the rights of religious minority groups including Ahmadiyah, Komunitas Eden and Syi'ah.

He is against the bill on anti-pornography because he it would restrain creativity and kill the plurality of Indonesian culture.

Dawam may no longer be psychically strong but his mind is still active.

He is still able to produce numerous short stories and essays despite his hospitalization.

And his voice remains critical and as outspoken as ever.

Especially when he sees his countrymen being marginalized or ill-treated.

Daniel Dhakidae, his long time friend at LP3ES, said Dawam might forget people's names, a long time habit -- but one thing he will always remember and stick to is justice.

Medical

An error in policy level affects medical service

Fachmi Idris | Fri, 01/16/2009 5:36 PM | Opinion

Last year, a front-page story in Indonesia's most widely circulated newspaper reported that some communicable disease control programs in Indonesia had failed to rein in key scourges, namely leprosy, filariasis and malaria. Criticism was then directed at the Health Ministry.

The criticism was not only about the communicable disease programs but expanded to encompass all health programs in Indonesia. One criticism leveled was that recent health programs in Indonesia have been run without clear direction. Another suggested the orientation of these programs was more curative than preventive.

Objectively, the World Bank found the current condition of the Indonesia health system is the root cause of its health program failings. In its report Investing in Indonesia's Health: Health Expenditure Review, 2008, the World Bank report stated ". The performance of the current health system is inadequate for achieving today's and future health outcomes.. Indonesia has made major improvements over the three decades in its health system, but is struggling to achieve important health outcomes, especially among the poor."

The unclear orientation of the health service system to benefit the poor - which is heavy on cure, light on preventionconsumes a good portion of the very limited health budget. As a consequence, the Health Ministry has been late in paying its share of subsidized medical treatment for the poor to the hospitals that have cared for them between 2005 and 2008.

In 2004, the health minister launched a pro-poor health insurance program with the acronym Askeskin, or PPHIP in English. There had been no formal health insurance plan (akin to a UK sickness fund or the US Medicare scheme) for the poor people in Indonesia to date. Newly elected President Susilo Bambang Yudhoyono made PPHIP a priority from the outset of his term. PPHIP has an unquestionably noble goal. Unfortunately, the president's will was not correctly implemented. The health minister was in a hurry to roll out the program, glossing over the need for regulations and guidelines.

Based on good will alone, the health minister has consistently said anyone who is low-income can receive free treatment in those public and private hospitals which collaborate with PPHIP.

The government's health insurance company (PT Askes) was contracted by the government to channel this sickness budget. The problem is the ministry's regulation allowed for ansystem". Eligible patients only had to self-identify as low-income to qualify for the coverage, leaving an open portal for abuse of the benefit.

During the first year, PPHIP appeared successful. Askes reimbursed all claims from hospitals both public and private. The program ended its first year with a budget surplus.

A widespread public awareness effort made many more people aware of the program in 2006, but the size of the PPHIP budget remained the same. The health minister based his budget estimates on the previous year's performance. The gap came to light as soon as many more now-informed poor started using the health insurance scheme.

Due to PPHIP's emphasis on distributing the funds upon request, and the weak guidelines governing medical procedures, the number of patients who were covered by the program significantly increased in 2006. Hospitals and doctors worked according to government guidelines in which the principles of cost and treatment quality control were poorly articulated. The government budget could not pay all the reimbursement requests coming in from hospitals and doctors. The situation was chaotic.

Askes, unsure of its role in this distribution-focused scheme, served no intermediary purpose except to pay the hospitals and doctors.

Since the money came from the Health Ministry, as soon as the ministry had no more funds to dole out, Askes in turn could not pay the hospitals for services already rendered. Askes and the health minister then started to blame each other.

The PPHIP failure then affected hospitals' cash flow. The ministry's debt to hospitals from 2006 was carried over to the 2007 budget. The hospitals had to wait between five and seven months for reimbursements from the government.

In the mean time, poor people continued to request hospital services with PPHIP coverage. Hospital bills continued to mount. By September 2007, Askes had Rp 123 billion (US$11 million) left whereas PPHIP's debt to hospitals already tallied Rp 1.56 trillion.

At that point the ministry decided to allocate additional funds to the tune of Rp 1.7 trillion to cover the debts. However, the additional funding could only pay hospital expenses incurred through mid-2007. After mid-2007, a new reimbursement lag began which continued until the end of 2008. Despite these regulatory and fiscal problems, patients will keep showing up every day without knowing or care about the systemic woes. For doctors, the mismanagement and squabbling between Askes and the Health Ministry is not their concern. Doctors are in business to help patients.

The hospital credit problems can affect its operations, and a hospital with meager cash flow might end up compromising patient care. If this happens, it would be an expensive lesson learned about what to do, or not do, to put in place a pro-poor health insurance scheme.

The noble goal of providing health insurance for poor people has to be translated into good regulations and guidelines, especially for health service providers, including doctors. Indonesia in fact already has a law to regulate universal health insurance for all Indonesians, Law 40/2004. Despite existing statutes, the hasty and poor implementation of PPHIP, which was not based on accepted standards, has become a lesson for all of us.

Errors at the policy level have adversely affected medical practice in the field. Hospitals' enormous outstanding invoices have been driving operational disturbances in managing both hospitals and doctors. As a consequence, the adequacy of service to patients by the hospital and the doctor could be affected. With this situation unresolved, the government needs to take action to right the policy errors.

The writer is president of the Confederation of Medical Associations in Asia and Oceania and president of the Indonesia Medical Association.