Implementation of Fuzzy C-Means Algorithm for Clustering Provinces in Indonesia Based on Micro and Small Industry Ratio in Village Areas

Post-economic crisis, the micro and small industries contribute the most labor compared to other industries. Regional development sourced from small micro industries is a strategic force in developing a country because the development of small micro industries leads to realizing equitable welfare to reduce income inequality. Development in village areas is an important factor for regional development, reducing inequality between regions, and alleviating poverty. However, based on the 2018 PODES survey, there are regional imbalances in Indonesia in the small micro industry which is centralized on Java Island. Therefore, clustering and characteristics of the province were carried out based on the PODES survey of the small micro industry sector. This research uses the Fuzzy C-Means algorithm to cluster 34 provinces in Indonesia based on the ratio of small micro industries in village areas in 2021, to see how the development of small micro industries in village areas in each province in Indonesia. Fuzzy C-Means is one of the data clustering techniques that uses a fuzzy clustering model, where cluster formation is based on a membership degree value that varies between 0 and 1. The Fuzzy C-Means algorithm generates 4 clusters, cluster 1 and 2 represents provinces with high and very high micro and small industry development in village areas and cluster 3 and 4 represents provinces with medium and low micro and small industry development in village areas. The Fuzzy C-Means algorithm produces a good cluster structure with a silhouette coefficient value of 0,6406.