Satay Chicken with Peanut Sauce (Indonesian/Bali) (2024)

By:Nagi

163 Comments

Many South East Asian countries have a version of Satay Chicken.This Indonesian version is theeasiest, you can get everything you need from the supermarket and it is SO tasty. This peanut sauce is thick and chunky, not a thin dipping sauce. Because I like to DOLLOP the sauce on!

** For the reader favourite THAI Satay chicken skewers, see here!**

Satay Chicken with Peanut Sauce (Indonesian/Bali) (1)

Satay Chicken is probably better known as Malaysian and Thai. But actually, it is originally from Indonesia. And as with all popular dishes from cuisines around the world, there are many versions of chicken satay. I’d like to share all the popular ones with you eventually – Thai, Malaysian and even the Singaporean version. But I thought it would be ideal to start with the original and the easiest –the Indonesian version.

When I was comparing the various satay chicken recipes I’ve used in the past, I realised that though they had some similarities, they are actuallymade very differently. None are too hard, but most required many ingredients. And when I saymany, I’m notexaggerating.Malaysian Satay Chicken requires 25+ ingredients (the one I use requires 32). The Thai version doesn’t require quite as many, but not far off, especially if you make it using homemade red curry paste(worth every ounce of effort).

However, the Indonesian version requires far less. Just as tasty as the other versions – just different. As my sister always says – “same, same…but DIFFERENT!”.

Satay Chicken with Peanut Sauce (Indonesian/Bali) (2)

The Peanut Sauce I use in this recipe isnot a 100% authentic Indonesian recipe, but withgood reason. The traditional Indonesian peanut sauce is made simply with peanuts, kecap manis (sweet soy sauce), chillies, shallots and lime. Not cooked, just ground together into a thick paste.

I am convinced that Indonesian peanuts are different to Australian peanuts. Because every single time I have tried the traditional recipe, the ground peanuts come out kind of “gritty”, like desiccated coconut. The sauce does not have the creaminess that you get at Indonesian restaurants and in Indonesia (I think I ate satay every day when I was in Bali!). I tried it numerous ways – using a mortar and pestle (the traditional way –it’s tiring!), food processor and even a blender stick. None worked.

For the purpose of sharing this recipe with you, I tried the original yet againand it still didn’t work.Ihave a few peanut sauce recipes I use regularly – a Vietnamese one (I shared this in the Vietnamese Rice Paper Rolls recipe), a Thai one (I’ll share this one day!), a Malaysian one (which takes time to cook and is the most complex one) and this one which I made up myself. Itis a mish mash of all these recipes!

This peanut sauce is made using store boughtpeanut butter. No, that is not authentic. Butdon’t be a snob! It’s flavoured with“real” Indonesian flavours soit doesn’t taste “westernised”. And it’s FAST and EASY to make.

Ibet thatIndonesian restaurants use at least some peanut butter in their satay sauce…..he he! 😉

– Nagi

Satay Chicken with Peanut Sauce (Indonesian/Bali) (4)

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Satay Chicken with Peanut Sauce (Indonesian/Bali) (5)

Satay Chicken with Restaurant Style Peanut Sauce (Indonesian/Bali style)

Author: Nagi | RecipeTin Eats

Prep: 15 minutes mins

Cook: 20 minutes mins

Total: 35 minutes mins

Chicken

Asian, Indonesian

4.96 from 45 votes

Servings12 – 14

Tap or hover to scale

Print

Though Satay Chicken is better known as Thai or Malaysian food, it actually originated from Indonesia and the Indonesian version is by far the simplest. The Peanut Sauce is my own – refer to the notes for why I prefer this to the authentic version. It is thick so it is great for dolloping, rather than a thin dipping sauce. Satay Chicken is fabulous for outdoor BBQ’s, parties and for fast midweek meals! They also reheat really well in the microwave. They can be cooked on the outdoor grill, on the stove or under the grill/broiler.

Ingredients

Chicken

  • 1 lb / 500g chicken thigh fillets (skinless and boneless)
  • 2 1/2 tbsp kecap manis (thick sweet soy sauce – see Note 1)
  • 1 tbsp unsalted butter , melted
  • 12 – 14 small bamboo skewers , soaked in water for at least 30 minutes

Peanut Sauce

  • 1 tbsp cooking oil (peanut, canola, vegetable)
  • 2 garlic cloves , minced
  • 1 small or 1/2 large onion , diced (red, brown, yellow or white)
  • 3 birds eye chillis , sliced (or sub with hot sauce)
  • 1/2 cup peanut butter (smooth or crunchy)
  • 1 cup coconut milk (full fat is better, but light is ok)
  • 2 1/2 tbsp kecap manis (Note 1)
  • 1/2 tbsp soy sauce
  • 1/2 tsp salt
  • 1/4 cup crushed unsalted roasted peanuts (buy crushed or chop your own)
  • 1 – 2 tbsp fresh lime juice

Garnish (optional)

  • Crushed peanuts
  • Lime wedges
  • Sliced shallots/scallions

Instructions

Chicken

  • Cut the chicken into 1.5cm/0.5″ cubes. Thread onto skewers – 4 to 5 pieces per skewer.

  • Combine kecap manis and butter, then brush onto chicken.

  • Cook the skewers on a hot BBQ (outdoor grill) or on the stove in a large non stick fry pan (add a splash of oil, and make sure the skewers will fit in the pan). Grill/broiler would also work.

  • Serve, garnished with crushed peanuts, shallots and with lime wedges and Peanut Sauce on the side.

Peanut Sauce

  • Heat oil in a small saucepan over medium high heat. Add garlic, onion and chillis and cook for 3 minutes until onion is translucent.

  • Turn heat down to medium, then add peanut butter, coconut milk, kecap manis, soy sauce and salt. Simmer for 10 minutes, whisking occasionally.

  • Use a handheld stick to puree (so the onion and chilli blends throughout the sauce – this is key). (See Note 2 for blending instructions) Stir through crushed peanuts and lime juice and simmer for 2 minutes. Allow to cool slightly before serving or to room temperature – it will thicken.

Recipe Notes:

1. Kecap Manis is a thick soy sauce that has the consistency of syrup. It can be found in the Asian or sauce section of supermarkets and it is cheap – in Australia, it is $2 for a small bottle or $4 for a very large one. It tastes like sweet soy sauce with smokiness, and it is a key ingredient in this recipe. It’s the secret ingredient in 90% of Indonesian recipes!

2. If you puree in a blender, make sure the sauce cools before you blend it. Otherwise it will literally “explode” when you start whizzing it and sauce will splatter everywhere. I made this mistake. 🙂

3. I find that the traditional recipe for Indonesian satay peanut sauce does not come out smooth and rich like you get at restaurants, it comes out a bit gritty, like it has desiccated coconut in it (which it does not). It may be because peanuts in Australia are different. Also, it requires considerable effort to ground the peanuts into a paste (food processor does not work). So this recipe is one I created using peanut butter. It is heavily flavoured with other ingredients so it tastes just like what you get at restaurants.

Here is an authentic Indonesian Peanut Sauce recipe if you want to give it a go: 100g roasted unsalted peanuts, 3 to 5 birds eye chillies, 50 ml kecap manis, 3 shallots/scallions, sliced and 1 tbsp lime juice. Ground all ingredients together, season to taste then serve.

4. This recipe makes more Peanut Sauce than you will need. It is hard to make a smaller batch. It goes great with steamed vegetables and rice, and lasts for at least a week in the fridge (it should last longer, but I think the flavour might fade). Freshen up leftover peanut sauce with a squeeze of fresh lime juice.

5.Nutrition for chicken skewer only (Peanut Sauce is below).

Satay Chicken with Peanut Sauce (Indonesian/Bali) (6)

Nutrition for Peanut Sauce based on my estimate that one batch is sufficient for 3 batches of chicken skewers.

Satay Chicken with Peanut Sauce (Indonesian/Bali) (7)

Nutrition Information:

Serving: 46gCalories: 66cal (3%)Carbohydrates: 1.4gProtein: 8.1g (16%)Fat: 3.2g (5%)Saturated Fat: 1.1g (7%)Cholesterol: 38mg (13%)Sodium: 42mg (2%)Vitamin A: 50IU (1%)Iron: 0.4mg (2%)

Did you make this recipe?I love hearing how you went with my recipes! Tag me on Instagram at @recipe_tin.

Chicken onsticks is always a good thing!

  • Thai Chicken Satay with Peanut Sauce

  • Pineapple Coconut Hawaiian Chicken Skewers

  • Honey Sriracha Chicken Skewers

  • Chicken Souvlaki (Greek)

  • Yakitori(Japanese skewers) – on my mother’s Japanese cooking website, RecipeTin Japan!

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Hi, I'm Nagi!

I believe you can make great food with everyday ingredients even if you’re short on time and cost conscious. You just need to cook clever and get creative!

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163 Comments

  1. Satay Chicken with Peanut Sauce (Indonesian/Bali) (11)Miss Di says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (12)
    Oh my, this was a really sensational and easy dish. Easiest marinade ever. Can’t wait to make it again, next time on the barbie.

    Reply

  2. Satay Chicken with Peanut Sauce (Indonesian/Bali) (13)Michelle says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (14)
    I made this last night, and it’s a winner – easy, tasty, delicious. Even my son, who doesn’t like peanuts said “yum!”. The sauce was easy to throw together, and the whole dish is a good option for a quick, tasty meal with little prep required. I grilled my chicken in the oven, at the same time as the sauce cooked, so the whole dish took the same amount of time as it took the rice to cook.

    Reply

  3. Satay Chicken with Peanut Sauce (Indonesian/Bali) (15)Kim says

    Thanks Nagi! You never steer me wrong. Sauce was awesome. My husbands fave Bali dish is satay and your sauce didn’t disappoint. I marinate my meat in Jimmys Sate sauce before skewering – sooo good!

    Reply

  4. Satay Chicken with Peanut Sauce (Indonesian/Bali) (18)Melisende says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (19)
    A very tasty peanut sauce. I made the mistake of using a plastic packet of concentrated coconut cream, so my sauce was too thick but I just thinned it out with more kecap manis , lime juice and soy sauce. Very popular recipe in my household.

    Reply

  5. Satay Chicken with Peanut Sauce (Indonesian/Bali) (24)Aisah says

    Hi I haven’t cooked this but was wondering, instead of skewing the chicken into bamboo sticks, can I stir fry the marinated chicken in a pan?

    Reply

    • Satay Chicken with Peanut Sauce (Indonesian/Bali) (25)Thesa says

      Hi, Nagi. I’m from Indonesia. I’m regular visitors in you blog, because I find your recipes helpful for my baking.

      Would you mind if I give some suggestions about this recipe? 😁

      First, the peanuts are crushed by some kind of mortar and pestle called “cobek” and “ulekan”. These result in a gritty-like peanut.

      Second, most of us don’t use onion in peanut sauce, but use garlic in a larger portion. Some of us use raw garlic (just chop it), and some other use the fried one (to avoid the aroma which is not liked by some people).

      Third, the coconut-like aroma probably comes from palm sugar. We commonly use palm-sugar in making peanuts sauce for satay.

      And the last, we use candlenut or “kemiri” to give the sauce a tastier flavor.

      Grind all the ingredients until smooth (except the peanut). To make it a more like Indonesian way, you can add “daun salam/salam leaf” (European called it as bay leaf but they ‘re pretty much different) to give distinctive flavor to the sauce.

      Another trick, the chicken (or you can also use lamb or beef) is marinated with a mix of garlic and salt, ground together until smooth, then marinate them. Rest them for about 15-30 minutes, then grilled.

      That’s what I can say about making satay in Indonesian way 😁. Such a long explanation, but hopefully this would be helpful

      Reply

  6. Satay Chicken with Peanut Sauce (Indonesian/Bali) (26)Marina says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (27)
    Hi Nagi,

    Made this last night and it was such a hit with my guests. The chicken was so simple but so delicious and we were eating the sauce with spoons because it was that good haha.

    Love your recipes!

    Reply

  7. Satay Chicken with Peanut Sauce (Indonesian/Bali) (29)Ayu says

    Hi, Indonesian here. I just bumped into your blog.
    Allow me to comment on your notes about the traditional recipe.

    I don’t know what kind of peanuts you have in Australia, but in Indonesia we use red skin peanuts which are smaller in size than regular peanuts. The peanuts are roasted or fried with the skin on and won`t be removed after. Also other ingredients will be fried beforehand except of lime leaves, which are not listed above. Same as a little bit of palmsugar, garlic and pre roasted/fried candle nuts are missing, which might be the reason why your sauce is not smooth. Candle nuts give not only a creamy texture but also deepens the flavor.

    The most important thing though is, the paste needs to be cooked in water or coconut milk. There is NO uncooked sate sauce in Indonesia. Never! Only pecal sauce, similar to gado-gado sauce, which has the same basic ingredients as sate sauce, but is uncooked except of the roasted peanuts. The sate sauce needs to be cooked under constant stirring for a long time until the oil seperates. Then you will get the smooth texture. Scoop out the seperated oil and use for grilling the skewers if you like. Before grilling, the skewers need to be coated with some of the peanut sauce, add a few sprinkle of kecap manis and grill. And don`t forget to garnish with fried shallots, acar and lime. That would be the traditional and original recipe from Madura, Java.

    Btw. every region in Indonesia has different recipes for sate. In North-Sumatra for example it includes way more ingredients than the original from Java. Even in Java the recipes vary from city to city. Some includes more spices and aromatics.

    Reply

  8. Satay Chicken with Peanut Sauce (Indonesian/Bali) (34)learnenglishwiththeteflqueen says

    I don’t think this is cheating at all! When I lived in Jakarta I used to buy blocks of satay bumbu to which you just needed to add hot water and of course chili if you like it hot!

    Reply

  9. Satay Chicken with Peanut Sauce (Indonesian/Bali) (35)Kim says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (36)
    Hi Nagi,
    I have tried the Indonesian and the Thai satays both yum!
    Do you have a recipe for Lombok satay? (Island near Bali) They reckon theirs is the best 🤣 apparently it has no peanuts!?!

    Regards

    Kim

    Reply

    • Satay Chicken with Peanut Sauce (Indonesian/Bali) (37)James says

      Satay Chicken with Peanut Sauce (Indonesian/Bali) (38)
      Hi Nagi
      I’ve made this recipe for a few of my family and friends I have found that adding a touch of honey in the satay just adds to the flavour. I usually serve it with the Nasi Goreng makes a really special meal
      Thank you so much your recipes they are special and make an amateur cook like me cook lots of delicious food
      Thanks so much
      James

      Reply

  10. Satay Chicken with Peanut Sauce (Indonesian/Bali) (39)Vanessa says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (40)
    Great simple Indonesian recipe. I prefer this peanut sauce to the Thai version.
    It blends smoothly with my Thermomix. Actually did the sauce in Thermomix while the chicken was cooking. Perfecto!

    Reply

  11. Satay Chicken with Peanut Sauce (Indonesian/Bali) (41)Lori Putnam says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (42)
    Can’t wait to try! What is a birds eye chili? What could I use if I can’t find those? And I’ve never heard of kecap manis so will start looking for that in the stores here in SC. Thx!

    Reply

  12. Satay Chicken with Peanut Sauce (Indonesian/Bali) (44)Sian says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (45)
    Another Nagi winner chicken dinner – husband loooooves the satay sauce, so I bet it goes on semi-regular rotation around here – Thanks again 🙂

    Reply

  13. Satay Chicken with Peanut Sauce (Indonesian/Bali) (46)Mel says

    This was fantastic even though it was raining and we used the griller. Rated 5/5 from 3 voters in our house. And sent to my daughter who is also a fan!

    Reply

  14. Satay Chicken with Peanut Sauce (Indonesian/Bali) (47)Ann says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (48)
    I made the satay sauce tonight and served over skewers of pan-fried tofu puffs accompanied by fried rice. It was delicious! The purée step changes everything, don’t skip this.

    Reply

  15. Satay Chicken with Peanut Sauce (Indonesian/Bali) (49)Diana Palmon says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (50)
    Super delicious! My only alterations were using no salt peanut butter, fish sauce instead of salt, and added fresh cilantro…primo!!!

    Reply

  16. Satay Chicken with Peanut Sauce (Indonesian/Bali) (52)Wolfgang says

    Satay Chicken with Peanut Sauce (Indonesian/Bali) (53)
    Hi Nagi, thanks for sharing your Indonesian sate recipe! I didn’t try yet, but your peanut sauce recipe sure sounds very tempting – will definitely try it soon. However, one ingredient you list is definitely different from sate that I got in Indonesia (outside restaurants catering mostly to western tourists, like in Ubud): the chicken never was skinless! In fact after I tried a couple times to make sate at home (in Munich, Germany, where it is hard to get boneless chicken meat with skin) then going to Indo again (I’ve been there 10 times now) I am sure that this is the main reason why sate ayam in Indo nearly always is still that decisive little bit more tasty than if made with skinned meat.

    Reply

    • Satay Chicken with Peanut Sauce (Indonesian/Bali) (54)Nagi says

      Hi Wolfgang, you can make it with skin on meat if you prefer – I chose skinless so it’s not as oily 🙂

      Reply

      • Satay Chicken with Peanut Sauce (Indonesian/Bali) (55)Wolfgang says

        That’s not so easy here at home. Yes I could buy a whole chicken, which usually comes with the skin, but then I’d have to cut the meat off the bones myself. I don’t think I would succeed in doing this properly. I could not find chicken meat without bones, but with the skin still on, around here.
        But thanks for your answer, Nagi!

        Reply

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