K-Medoids Cluster Analysis for Grouping Provinces in Indonesia Based on Agricultural Households ST2023

Abstract

Indonesia is an agrarian country where the majority of its population works in the agricultural sector. The agricultural sector is one of the main sectors in economic development, playing a significant role and having great potential. Despite its potential and high labor absorption, the reality shows that most farmers are still part of the lower-middle class. This is evidenced by the high number of poor people who depend on the agricultural sector. Therefore, cluster analysis is conducted to help the government and stakeholders design policies for agricultural revitalization. This study uses K-Medoids cluster analysis, which results in 2 clusters of provinces based on the number of Agricultural Household Enterprises. Cluster 1 consists of 35 provinces with a low average number of Agricultural Household Enterprises, while Cluster 2 consists of 3 provinces with a high average number of Agricultural Household Enterprises. The analysis results have a DBI value of 0.394, indicating that the analysis is optimal.