The Use of Weighted K-means Clustering And Analytical Hierarchy Process in Halal Certification Readiness for MSMES in Yogyakarta City

Abstract

This study investigates the readiness of Micro, Small, and Medium Enterprises (MSMEs) in Yogyakarta City, Indonesia, for halal certification using a novel approach combining Weighted K-Means Clustering and Analytical Hierarchy Process (AHP). As Indonesia aims to become a global halal hub, understanding the preparedness of MSMEs for halal certification is crucial. The research employs AHP to determine the relative importance of factors influencing halal certification readiness, which are then used as weights in a K-Means clustering algorithm. Data collected from MSMEs in Yogyakarta City, encompassing financial resources, current production processes, halal knowledge, and market demand, are analyzed using this weighted clustering approach. The resulting clusters reveal distinct groups of MSMEs with varying levels of readiness for halal certification. This segmentation provides valuable insights for policymakers and support organizations to develop targeted interventions and strategies. The study contributes to the growing body of literature on halal certification and offers a methodological framework for assessing MSME readiness in other contexts. The findings have significant implications for facilitating the transition to mandatory halal certification while supporting the growth and competitiveness of local businesses in the global halal market.