Clustering of Regencies/Cities Based on Factors Influencing Poverty in West Sumatra Using K-Medoids

Abstract

Poverty remains a significant issue in Indonesia, particularly in West Sumatra Province, where regional disparities persist despite a national decline in poverty rates. This study aims to classify the 19 regencies/cities in West Sumatra based on key socioeconomic indicators to support more targeted and effective poverty alleviation policies. Using a quantitative descriptive approach, the research applies the K-Medoids clustering method to group regions according to four indicators: Gross Regional Domestic Product (GRDP) per capita, Human Development Index (HDI), Open Unemployment Rate (OUR), and Gini Ratio. Secondary data for the year 2024 were obtained from the official website of the Central Bureau of Statistics of West Sumatra. Prior to clustering, data standardization using Z-score transformation was performed, and multicollinearity was tested using the Variance Inflation Factor (VIF). The silhouette method indicated that the optimal number of clusters is four. The clustering analysis revealed four distinct groups: (1) underdeveloped areas with low income and human development but high inequality; (2) moderately developed areas with stable unemployment and low income inequality; (3) urbanized areas with high income and human development but also high unemployment and inequality; and (4) a single metropolitan area with high economic and human development and moderate inequality. The findings highlight the importance of region-specific strategies in addressing poverty, considering the diverse economic and social conditions across regions. The results can serve as a basis for designing equitable and effective socioeconomic development policies.