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

Abstract

Agriculture plays a crucial role in Indonesia's national development, providing essential resources such as raw materials, household income, and contributing significantly to Gross Domestik Product (GDP). According to the 2023 Agricultural Census (ST2023), there has been an increase in the number of Agricultural Household Enterprises (RTUP) across various agricultural subsectors. However, the welfare of agricultural entrepreneurs remains low, with 48.68% of poor household heads working in this sector. Therefore, an analysis is needed to understand the patterns and characteristics of RTUPs in each province. This study aims to cluster the provinces in Indonesia based on the number of Agricultural Household Enterprises (RTUP) using K-Medoids cluster analysis. K-Medoids, an extension of K-Means, was chosen for its ability to handle outliers by using medoids as cluster centers instead of means. The research utilized data from the 2023 Agricultural Census, covering 38 provinces and eight variables representing different agricultural subsectors. The optimal number of clusters was determined using the Elbow method, resulting in four distinct clusters. The findings revealed that Cluster 1 consists of 12 provinces with moderate RTUP numbers, Cluster 2 includes 23 provinces with low RTUP numbers, Cluster 3 comprises one province with high RTUP numbers, and Cluster 4 contains two provinces with very high RTUP numbers. The cluster validation using the Davies-Bouldin Index (DBI) yielded a value of 0.722, indicating that the clustering results are optimal.