HomeThe World We DiscoverRice Price Crisis 25 Years Ago Still Hurts The Children

Rice Price Crisis 25 Years Ago Still Hurts The Children

When Indonesia's economic crisis skyrocketed 25 years ago, parents chose alternative foods which hurt children for decades.

Illustration showing an abstract image of a family walking in a rice field.Health and life sciencesWhen parents are forced to choose lower priced foods, the ability to make nutritional choices is vital. (Science Reader)
When parents are forced to choose lower priced foods, the ability to make nutritional choices is vital. (Science Reader)
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The World We Discover · Explore this series
January 4, 2026
Key Takeaways
  • Indonesia's rice price shock increased childhood stunting by 3.5 percentage points.
  • Malnourished children from the crisis became significantly more prone to adult obesity.
  • Urban families and children of less-educated mothers faced the worst long-term effects.

When Indonesia's rice prices doubled during the late 1990s financial meltdown, families made a brutal calculation. They bought enough calories to fill stomachs but skipped the nutrient-dense foods their children needed to grow properly.

Two decades later, those kids carry visible scars from that choice.

Researchers at the University of Bonn tracked what happened when economic chaos drives up the cost of staple foods, as reported in a new study published in Global Food Security.

The team examined data from Indonesia's Family Life Survey, which followed households through the Asian financial crisis when rice - the country's dietary backbone - became suddenly unaffordable for millions.

Key figure

3.5 pp

increase in childhood stunting caused by the rice price shock

The Hidden Deficiency Trap

Lead researcher Elza S. Elmira and her colleagues at the Center for Development Research discovered something counterintuitive. The price surge increased childhood stunting by 3.5 percentage points across affected regions.

What is childhood stunting?

Childhood stunting is when a child's height falls significantly below the normal range for their age, caused by chronic malnutrition. It reflects long-term undernutrition rather than short-term hunger, and growth lost in early childhood can never be fully recovered. Stunting affects brain development as well as physical growth.

But here's the twist: those same malnourished children became significantly more prone to obesity as young adults.

The mechanism involves what Elmira calls "hidden deficiency." When budgets tighten, families prioritize cheap carbohydrates over vegetables, protein, and micronutrient-rich foods.

Children get enough energy to survive but lack the zinc, iron, and vitamins their bodies need for proper skeletal development. Their height suffers while their weight doesn't necessarily drop.

This results in a hidden deficiency of important micronutrients, which slows down height growth without necessarily reducing body weight to the same extent.

Elza S. Elmira, Lead Researcher

The research team tracked individuals from childhood through 2014, when subjects reached ages 17 to 23. Kids who were between three and five during the crisis showed the strongest correlations with elevated body mass index and obesity risk.

Cities Hit Harder Than Countryside

Geography shaped outcomes dramatically. Urban families, who must purchase virtually all their food, faced steeper consequences than rural households who could grow their own rice.

Education created another divide. Children whose mothers had limited schooling experienced more severe effects than those with better-educated parents. This suggests knowledge about nutrition substitutes, or how to stretch a tight budget while maintaining dietary quality, offers protection during economic shocks.

Professor Matin Qaim, study co-author and member of the University of Bonn's Cluster of Excellence for sustainable agriculture, emphasizes that poverty lines alone miss the real vulnerability.

"In the same crisis, undernutrition and obesity can both increase," he notes.

A Warning for Turbulent Times

The findings arrive as climate disasters, conflicts, and supply chain disruptions trigger food price volatility worldwide. What happened in Indonesia provides a template for understanding how economic turbulence converts into lifelong health damage.

The Bonn team argues that crisis response needs to move beyond calorie counting. Policies focused solely on preventing starvation can still leave children nutritionally crippled if micronutrient access collapses.

Crisis response needs to move beyond calorie counting.

The implications extend beyond individual suffering. A generation of adults with stunted growth and obesity faces elevated risks for diabetes, cardiovascular disease, and reduced cognitive function - outcomes that ripple through workforce productivity and healthcare systems for decades.

Families making seemingly reasonable choices, like filling bellies with affordable staples, can inadvertently sentence their children to bodies that never quite catch up, even when prosperity returns.

The window for intervention is narrow, the stakes are permanent, and the solution requires thinking beyond the price of rice itself to the broader quality of what ends up on plates during chaos.

Fact Check: Claim-by-Claim Verification Verified

The recap accurately summarizes the University of Bonn study on the 1997-2000 Indonesian rice price shock's long-term effects on child stunting and obesity risk, matching key claims, data, and quotes from press releases.

1 Verified
Rice price surge during Indonesia's late 1990s financial crisis led to 3.5 percentage point increase in childhood stunting
2 Verified
Affected children showed higher obesity risk as young adults, linked to "hidden deficiency" of micronutrients despite sufficient calories
3 Verified
Stronger impacts in urban areas and among children of less-educated mothers; tracked via Indonesia Family Life Survey up to 2014
4 Verified
Quotes from Elza S. Elmira on hidden deficiency and Matin Qaim on dual undernutrition-obesity risks align with source statements

Commentary

  • Article uses "25 years ago" loosely for ~1998 crisis (now ~27 years); acceptable for popular recap.
  • Study reports statistical correlations, not strict causation, due to long-term data limitations.[1]

Sources used for verification

Academic/Peer-reviewed:

Other reliable sources:

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