Many South East Asian countries have a version of Satay Chicken. This Indonesian version is the easiest, 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!
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 actually made very differently. None are too hard, but most required many ingredients. And when I say many, I’m not exaggerating. 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!”.
The Peanut Sauce I use in this recipe is not a 100% authentic Indonesian recipe, but with good 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 again and it still didn’t work. I have 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. It is a mish mash of all these recipes!
This peanut sauce is made using store bought peanut butter. No, that is not authentic. But don’t be a snob! It’s flavoured with “real” Indonesian flavours so it doesn’t taste “westernised”. And it’s FAST and EASY to make.
I bet that Indonesian restaurants use at least some peanut butter in their satay sauce…..he he! 😉
– Nagi
Chicken on sticks is always a good thing!
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Chicken Souvlaki (Greek)
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Yakitori (Japanese skewers) – on my mother’s Japanese cooking website, RecipeTin Japan!
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Satay Chicken with Restaurant Style Peanut Sauce (Indonesian/Bali style)
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:


Nutrition Information:
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.
Fantastic recipe. Thank you.
Easy to make and super tasty, even without the satay sauce.
I haven’t been to Bali for 26 years. Thank you for the satay and nasi goreng recipes. They take me back on memory lane. Bless you.
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?
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
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!
Doesn’t everyone eat sauce with spoons?!! I know I do! N x
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.
Thanks for all of those tips Ayu! N x
This lady’s recipes are amazing. Try her shrimp pad thai too! It’s out of sight.
Looks so yummy
.Will cook tonight for dinner
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!
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
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
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!
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!
Fussy miss 13 loved these and gobbled them up. Thank you!
Another Nagi winner chicken dinner – husband loooooves the satay sauce, so I bet it goes on semi-regular rotation around here – Thanks again 🙂
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!
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.
Super delicious! My only alterations were using no salt peanut butter, fish sauce instead of salt, and added fresh cilantro…primo!!!
Nailed it Diana!! N x
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.
Hi Wolfgang, you can make it with skin on meat if you prefer – I chose skinless so it’s not as oily 🙂
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!
Fantastic chicken satay recipe. Thanks mate!
You’re so welcome!
Hi Nagi, I prepped for a Thai party- skewers and sauces for it and dressing for Thai beef salad and had to postpone due to an Aussie wild storm cell! Is it possible to freeze chicken skewers in kecap manis and the satay and salad dressing?
Hi Milly, yes you can freeze all the components separate – except for the salad dressing, I’d make it fresh 🙂
Thanks Nagi!
This sauce really brightened up our steak & steamed vegs (broccoli & green beans) dinner tonight.
In fact, it was so good that my Bf was eating it straight out of the pot. Glad there’s some left over for tmrw night too 💕
Wahoo, what a great compliment!