Richard Borsuk, Jakarta – Indonesian bankers braced for a tense day of business Monday following Saturday's closure of 16 banks.

Tens of thousands of depositors of the 16 banks are expected to mob them to start the process of getting documentation needed to eventually recover a maximum 20 million rupiah (US$5,600) per account. Meanwhile, because of the shock of the closures, some other Indonesians may pull their savings out of other banks.

Over the weekend, at least some of Indonesia's bigger banks made preparations for the possibility of heavy withdrawals Monday. Police are expected to be out in strength as the country tries to cope with the aftermath of the closures, which reduced Indonesia's banks to 223 from 239.

"There's a pretty high likelihood there will be some panic [Monday]," one senior Indonesian banker said. "We just try to get ready and hope for the best."

Appeal for Calm

In announcing the closures and plans to pay customers up to 20 million rupiah, the government said: "We appeal to all members of society to remain calm." On Sunday, Bank Indonesia Gov. Soedradjad Djiwandono went on television to repeat the appeal and explain how depositors of the 16 banks will get money from three designated state-owned banks beginning Nov. 13.

Authorities haven't said how many depositors the 16 banks had altogether, though bankers estimate the total number at several hundred thousand. The government said that 94% of depositors at the closed banks had deposits of less than 20 million rupiah.

While there are worries about keeping Indonesian bank depositors calm in general, authorities get high marks from most analysts for the tough action to shut banks. Since August, Indonesia's central bank had repeatedly said it intended to close and liquidate bad banks to tackle woes in the country's banking system. Saturday's action was taken at the behest of the International Monetary Fund, which told Indonesia to move fast.

Late last week there was a flurry of speculation that nearly 20 banks were about to get axed, including some linked to President Suharto's family and other powerful Indonesians. Of the 16 closed, three are partly owned by, or connected with, Mr. Suharto's relatives. Harmful to Society

In announcing planned liquidations, the government said the 16 banks were "insolvent to the point of endangering business continuity" and "harming the interest of society."

Most of the 16 are very small. But the biggest, PT Bank Harapan Santosa, was at one time among the country's 15 largest privately owned banks in terms of assets. The main owner of the bank, which has more than 30 Jakarta branches, is Hendra Rahardja, a brother of Eddy Tansil, a businessman who in 1994 was jailed for 20 years for his role in a $620 million fraud at state-owned Bapindo Bank. Mr. Tansil later escaped.

The second-biggest of the closed banks, in terms of reported assets, is PT Bank Pacific, which is partly owned by Bank Indonesia, the central bank. Bank Indonesia became a shareholder more than 15 years ago when it shored up the founders, the family of Ibnu Sutowo, former president-director of Indonesia's state oil company Pertamina. Bankers say, and government officials privately acknowledge, that Bank Pacific in effect guaranteed hundreds of millions of dollars in promissory notes issued by a finance company owned by Mr. Sutowo's daughter.

Another of the closed banks is PT Bank Andromeda, which was co-founded in 1990 by three important businessmen: Barito Pacific Group Chairman Prajogo Pangestu, Mr. Suharto's second son Bambang Trihatmodjo and Napan Group Chief Executive Henry Pribadi. It wasn't immediately clear whether Mr. Bambang remains a shareholder.

More Ties to Suharto

Also closed was PT Bank Jakarta, whose shareholders include Probosutedjo, the president's half-brother. The third closed bank with a family link is PT Bank Industri, 8% owned by Siti Hediati Prabowo, Mr. Suharto's second daughter.

Another small shareholder in Bank Industri, and its chairman, is Hashim Djojohadikusumo, a prominent businessman. Mr. Hashim, the brother-in-law of Mrs. Prabowo, owned 8% of the bank, which is 60% owned by a pension fund of state-owned PT Bank Rakyat Indonesia. He said the closure was "embarrassing and irritating." Mr. Hashim, who is also a brother-in-law to Gov. Soedradjad, said he had earlier been told by authorities that owners had until the end of November to put in new capital.

In spite of his personal embarrassment, Mr. Hashim said that shutting badly run banks is a "good thing" to get other banks to manage themselves better.

Jakarta bankers said they believe Gov. Soedradjad was trying to close a smaller group before Indonesia called in the IMF in early October. Then, they said, the strategy was changed to close a bigger number in what authorities hope will be seen as one final sweep, rather than the first in several stages of closures. In the Saturday statement the government said "It should be emphasized that all banks that are not liquidated will carry out their operations as usual."

The statement also said owners and shareholders of liquidated banks "are responsible for all consequences that arise and are obliged to cooperate with the liquidation team." Finance Minister Mar'ie Muhammad on Saturday requested all owners and shareholders not to travel outside Indonesia until they have completed cooperation with the liquidation team.