Cluster analysis is a technique in data mining that aims to group data (object) based on the information in the data. This research is used a non-hierarchical grouping named K-Medoids algorithm to group districts/cities in Borneo island based on poverty indicators and Principal Component Analysis (PCA) method to reduce research variable. This research is also do a cluster validity test to see how many cluster there are has the best grouping result using Silhouette Coefficient (SC) method. Based on the results of the analysis there is 3 optimal Principal Component (PC) were obtained with eigen value criteria of greater than or equal to 1. Furthermore, districts/cities on Borneo island were grouped based on the PC that formed and obtained 2 optimal clusters with an SC value of 0.61. The K-Medoids algorithm obtain 2 cluster, cluster 1 consisting of 49 districts/cities and cluster 2 consisting of 7 cities.
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