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:
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!
What a delicious peanut sauce- I make this sauce on its own and freeze in small portions for individual meals. Been making this for ages – so many of my friends request it – so thank you.
Whilst this might defeat the Indonesian style Ive recently been adding a tablespoon of S&B spicy curry powder – this gives it a very subtle sweet Japanese curry flavour. Divine
The peanuts are different!! If you want the legitimate sauce that the indos use you need to go to an Asian market and your after sambel pecel it’s the real stuff comes in a little brown brick and you mix it with hot water and break it down and it will take you straight back to Indonesia with the smell
Yeesss! Sambel pecel is the simplest way to get satay sauce instantly
I once had this peanut sauce with boiled eggs and it is the only thing I every use peanut butter for. I love it! Going to try this
I hope you love this one too!
Yum. The peanut sauce freezes really well. The second time I made the chicken I didn’t use skewers due to time and it turned out just as good.
Terrific Cassie!
You know peanut butter is just peanuts, right?
Plus oil, salt, sugar.. etc ☺️
Scrumptious, yummy. A real hit! Thx Nagi.
I’m so glad you love it John! x
This recipe is delicious!!! I made it tonight and am impressed. Can I freeze the sauce?
Thankyou
Yes you sure can! This one will freeze just fine! 🙂 N x
Amazing, thanks!
Hi Naggi,
When does the salt go in?
With the soy sauce. Oops! Updated!
I’m only sorry I didn’t make enough sauce. After the first taste, I wanted it to last for a week! Yummmm!
Made this last night for the first time and had to comment.
When I first made the sauce it just tasted like peanut butter but after I blended the sauce it was so flavoursome, it was awesome with the chicken.
Couldn’t find the Kecap Manis sauce anywhere so just added some maple syrup. Ended up being one of the best starters I’ve ever made, will definitely be making it again.
I’m so pleased to hear that Steve! Thanks for sharing your feedback! N x 😊
I made this recipe last night and made it into a satay sauce poured over sticky rice and grilled chicken and it was the bomb! Definitely be making it again!
I’m so pleased to hear you enjoyed this Kim! Thanks for letting me know! N x ❤️
Is this recipe gluten free??
No Ben – kecap manis and soy sauce are usually gluten heavy. However you can buy gluten free soy sauce, and use that to make your own kecap manis. That’s what I will be doing for my coeliac daughter.
Hi Nagi!
Thanks for sharing this recipe! I can’t wait to try it! I was wondering if perhaps the peanuts are different because they’re not boiled? My Oma would always boil the peanuts before ground them up. Probably to soften them up?
Who knows? And the reason Indo food is so popular in Holland is that Indonesia used to be a Dutch colony before WW2. And after the war and Indonesia’s independence, a lot of Dutch India wound up in Holland! 😁
Thanks again!!
WOAH! I have to look that up, that’s such a great tip! N xx
I’d be interested in any specific recipes you might have to recommend to go with this to round out the meal. I know rice or noodles or veggies would go well, but any particular/favorite recipes you might point me to? I’m thinking this would be great to serve at a little gathering I’m planning but will need more dishes to go with it. Thoughts?
Nasi Goreng! https://www.recipetineats.com/nasi-goreng-indonesian-fried-rice/ Also Beef Rendang (some say it is Indonesian even though it is more well known as a Malaysian dish) https://www.recipetineats.com/beef-rendang/ And any of the stir fried noodles on my site will be terrific with this, just search “noodles” 🙂 N x
This is a great help! Thanks so much, Nagi!
My Istri Ku on Bali is a renowned young Chef and makes this. Used the original Bali Recipe and tweaked it a little. Result was that using it as one item at competitions all over Asia and also 16 Nation Competition she keeps winning medals. Showed her your recipe and she said it was close to hers.
Quite a compliment!
WOAH! That IS an amazing compliment! Is that the name of the chef or restaurant?? I love Bali!
Hi, how long can you keep the sauce for?
Delicious recipe😍
3 days in the fridge 🙂
Can it be frozen? A shame not to use it , delish 😍
Amazing! Thank you so much. We’re exploring the cultures of the world with our little 4 year old and tonight was Indonesia night. This satay was amazing – all three of us loved it. In fact my husband said the satay sauce was better than any restaurant sauce. Thanks again
Wow what a compliment Anne! Fantastic to hear you enjoyed it, thanks for letting me know! N xx
Oh My Goodness… In the last 6 months, I’ve been branching out and trying new recipes I find on Pinterest. I’ve been wanting to make this for a while but I couldn’t find the kecap manis at either of our large grocery stores. Eventually I made my own and tried your Satay Chicken. Wow!!! This is the best thing I’ve ever made! Not kidding! Thank you for this delicious recipe, I’ll make it again and again!
WOO HOO! So glad you loved it Laura, thank you SO MUCH for taking the time to let me know!! N x❤️
I love any of your recipes I’ve tried so far, but this was probably the best!! The only ingredient I didn’t have on hand was the Kecap Manis… I googled how to make a substitute and found one that used 1/4 cup of soya sauce and 1/4+1/8 cup of brown sugar. The end result of the meal was beyond delicious! Even my husband (who never brings his lunch to work) asked if he could take the leftovers! Thank you once again for a wonderful, easy meal!
Woah! Deana, thank you SO MUCH for the wonderful compliment! And I’m so glad you enjoyed this!!! 🙂
Thank you Indonesian satay is the best
Been looking for a Indonesian satay recipe for a longtime
All I could remember that the marinade was butter and sweet soy sauce
defineately going to try this
Hope you do try this Fay!! It really is super delicious!