<![CDATA[This study examines the effect of interest rates on the decline in credit demand at PT Bank Rakyat Indonesia (Persero) Tbk. (BRI), the largest bank in Indonesia with a focus on the Micro, Small, and Medium Enterprises (MSME) segment. Using a qualitative-descriptive approach with secondary data analysis from BRI's annual reports for the 2020–2024 period, Bank Indonesia (BI) data, and Financial Services Authority (OJK) publications, this study finds that the increase in BI Rate from 3.50% (2021) to 6.25% (2024) significantly impacted BRI's credit growth. BRI's credit growth, which previously reached 13.01% yoy (2022) and 12.50% yoy (2023), slowed substantially to only 6.97% yoy in 2024 below the management's target of 10%–12%. From a service management perspective, the increase in BRI's Prime Lending Rate (SBDK) for the corporate segment from 7.25% (2021) to 8.50% (2024) and the retail segment from 7.50% to 8.75% reduces the perceived value of BRI's credit services to borrowers and encourages wait-and-see behavior from corporate and MSME customers. Managerial implications suggest that BRI needs to strengthen value-based service strategies, accelerate digital transformation, and innovate in credit product design to maintain competitiveness amid high interest rate pressures.]]>
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