Indonesian Journal of Information System
Vol. 5 No. 1 (2022): August 2022

Machine Learning for Clustering Regencies-Cities Based on Inflation and Poverty Rates in Indonesia

Rendra Gustriansyah (Universitas Indo Global Mandiri)
Juhaini Alie (Universitas Indo Global Mandiri)
Ahmad Sanmorino (Universitas Indo Global Mandiri)
Rudi Heriansyah (Universitas Indo Global Mandiri)
Megat Norulazmi Megat Mohamed Noor (Universiti Kuala Lumpur)



Article Info

Publish Date
31 Aug 2022

Abstract

The COVID-19 pandemic has increased inflation and poverty rates in many cities, thus requiring considerable attention from the government as a policymaker. Therefore, this study aims to cluster regencies/cities that need mitigation priorities from the Indonesian government based on inflation and poverty rates in 2021. Four machine learning methods, namely k-Means (KM), Partitioning around medoids (PAM), Ward, and Divisive analysis (Diana) are utilized and compared to achieve that purpose. Clustering 90 regencies/cities in Indonesia produced five optimal clusters. Furthermore, the clustering results were validated using the Silhouette width (SW) and Dunn index (DI). The results showed that the k-means method produced the most compact cluster. Hence, this study's results can be utilized as a reference for the government in determining the steps and priorities of economic policy in Indonesia.

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