Provincial Clustering Based on the Impact of the Financial System on Macroeconomic Stability in Indonesia

This research aims to analyze the impact of the financial system on macroeconomic stability. The unit of analysis consisted of 38 Indonesian provinces, and the period was 2024. The research data consisted of secondary data published by the National Research and Innovation Agency (BRIN). The data were analyzed using quantitative descriptive methods, including graphs, percentages, and frequency distributions. The frequency distribution table was used to cluster provinces and map the impact of regional innovation on economic development. The research results show that provinces with a low macroeconomic stability index are located in eastern Indonesia, particularly in Papua. Meanwhile, provinces with weaker financial systems and lower macroeconomic stability include Aceh, Gorontalo, West Sulawesi, Maluku, West Papua, South Papua, Central Papua, and Highland Papua. Almost all of these provinces are located in Eastern Indonesia. Furthermore, the study results show that the financial system has a lesser impact on promoting macroeconomic stability.