Cluster analysis is a statistical analysis that can group objects of observation into several groups/clusters based on their similarity of characteristics. The grouping into several clusters is based on the information contained in the object under study. A cluster can be said to be good if it has high internal homogeneity and high external heterogeneity. The clustering method used in this study is the agglomerate hierarchical clustering (AHC) method, where the cluster formation algorithm used in this AHC method is average linkage, single linkage, complete linkage, and ward. Cluster analysis using the AHC method will be applied to poverty indicator data for Regencies/Cities in Kalimantan Island, which consists of several variables. This study aims to obtain the optimal results of grouping Regencies/Cities in Kalimantan Island, with the number of clusters that have been determined at the beginning, namely as many as 3 clusters. Based on the results of the analysis using the AHC method, the ward algorithm produces an agglomerate coefficient value of 0.89, where this value is close to 1, which means that the ward algorithm is the best in clustering Regencies/Cities in Kalimantan Island.
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