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Satay Chicken with Peanut Sauce (Indonesian/Bali)

By Nagi Maehashi
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Published2 Feb '15 Updated3 Apr '24
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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!

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

Satay Chicken with Peanut Sauce - this Bali/indonesian version is the easiest of all South East Asian satays, a handful of ingredients you can get from the supermarket. Thick, chunky peanut sauce!

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!”.

Satay Chicken with Peanut Sauce (Indonesian / Bali version) - the easiest of all South East Asian satays, a handful of ingredients you can get from the supermarket. Thick, chunky peanut sauce!

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.

Vietnamese Rice Paper Rolls
The Peanut Sauce in my Vietnamese Rice Paper Rolls recipe would also go great with Chicken Satay

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

Satay Chicken with Peanut Sauce (Indonesian / Bali version) - the easiest of all South East Asian satays, a handful of ingredients you can get from the supermarket. Thick, chunky peanut sauce!

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Satay Chicken with Peanut Sauce (Indonesian / Bali version)

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 46 votes
Servings12 – 14
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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
Prevent screen from sleeping

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).
Chicken Satay Nutrition - Chicken Skewers
Nutrition for Peanut Sauce based on my estimate that one batch is sufficient for 3 batches of chicken skewers.
Chicken Satay Nutrition - Peanut Sauce

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 on sticks is always a good thing!

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

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166 Comments

  1. Thalia @ butter and brioche says

    February 7, 2015 at 8:48 am

    I just came back from Bali on Saturday.. and I definitely am missing my sate skewers! Thanks for the recipe Nagi, I have to make these tonight.

    Reply
    • Nagi | RecipeTin says

      February 7, 2015 at 9:01 am

      Thanks Thalia! Hope you had fun!! I miss Bali 🙂 Satay central!!

      Reply
  2. Caroline @ Shrinking Single says

    February 6, 2015 at 9:54 am

    That is one nice photo background you have there Nagi 🙂

    Reply
    • Nagi | RecipeTin says

      February 6, 2015 at 11:15 am

      😉 Thanks Caroline! Not a vanity top 🙂

      Reply
  3. Bam's Kitchen says

    February 4, 2015 at 10:25 pm

    5 stars
    Beautiful chicken satay Nagi! Light and bright and delicious dish! I feel like I am right there at the dinner table with you! Not only do your grilled skewers look delicious but you were able to reduce the Asian ingredient list by many. I know that many people have a difficult time even getting excited about Asian dishes as they always have a huge ingredient but your version seems so much easier. Take care

    Reply
    • Nagi | RecipeTin says

      February 5, 2015 at 7:06 am

      Thanks so much!! Yes, the ingredients for the Indo/Bali style satay is MUCH shorter than other Asian versions! I love it so much! 🙂

      Reply
  4. Maggie says

    February 4, 2015 at 4:07 pm

    5 stars
    Haha, I like your description – doesn’t taste “westernised”. So I know it’s a great recipe to try at home 🙂
    I totally agree that authentic Malay style satay just requires so many ingredients, and yeah it has a reason. But when I browse through your Indonesian version, it just appears so flavorful! It’s one of my favorite dish and can’t wait to try out this! 🙂

    Reply
    • Nagi | RecipeTin says

      February 5, 2015 at 7:06 am

      I agree with you Maggie! And YES this is just as flavourful because of the peanut sauce 🙂 I love Malay satay but it is an EFFORT to make! (Worth it….but I just don’t have the energy most days!!) 🙂

      Reply
  5. Lizzy (Good Things) says

    February 4, 2015 at 3:08 pm

    5 stars
    Definitely trying your recipe, Nagi… satay chicken is a favourite at my place and this looks and sounds yum!

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 3:46 pm

      Thanks Lizzy! Satay chicken is a huge favourite over here too! 🙂

      Reply
  6. Lucy @ Bake Play Smile says

    February 4, 2015 at 7:17 am

    Your photos have me drooling!! I love the incredible flavours you’ve used in this dish. Just divine.

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 8:49 am

      Thanks Lucy! 🙂

      Reply
  7. Sacharissa says

    February 4, 2015 at 4:54 am

    I made this for dinner tonight and this is my favourite recipe ever. EVER.

    Chicken satay is my favourite food but I’ve never been able to find a restraunt or recipe that comes close to the restraunt I first ate satay in. This recipe was perfect!

    The sauce, oh my god, the sauce! I was rummaging through my kitchen just to find stuff to dip into it! Eventually I just used my fingers (the shame!).

    Even my husband declared it, “delicious!” and he’s very hard to please. He was mooching about the kitchen looking for more.

    If you hear about a peanut butter shortage in Scotland that’ll be me. 😀

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 8:48 am

      Oh wow, thank you SO MUCH for your feedback Sacharissa! I’m so thrilled you enjoyed it!! Yay yay yay!! 🙂 I have no shame when it comes to this sauce – I just had it spread on toast for breakfast!! Disgusting!! 🙂

      Reply
  8. Sandra Shaffer says

    February 4, 2015 at 4:52 am

    5 stars
    Food on a stick! We absolutely have the same taste in foods. Love that the peanut sauce is nice and thick!

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 8:49 am

      Thanks Sandra!! 🙂

      Reply
  9. Helen @ Scrummy Lane says

    February 4, 2015 at 3:29 am

    Nagi, you beat me to this one – I’ve been wanting to work on a satay recipe for ages. I made a sauce I was really happy with about a year ago and guess what – I’ve totally forgotten which recipe I used!
    I love that yours is simple but still has enough ingredients in it to make it taste like it’s supposed to.
    Oh, by the way, when I was in Bali or year or so ago we asked how they made the satay sauce in one place and they said they didn’t know – it just came in a can! Haha – was delicious, though! 🙂

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 4:56 am

      We had a cook at the villa we stayed in at Bali and he never showed me how to make the sauce…..hmm….suspicious! Maybe it WAS out of a can!! 🙂

      Reply
  10. Kayiu @ Saucy Spatula says

    February 4, 2015 at 12:55 am

    5 stars
    I can’t even express my excitement for this!!! I’m putting it down on my meal calendar for this weekend. NO JOKE! The photos are stunning as always!

    K 🙂

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 4:59 am

      Thanks for your lovely comment Kayiu!! Love to hear what you think! 🙂

      Reply
  11. Helene D'Souza says

    February 3, 2015 at 11:33 pm

    5 stars
    westernized!! haha, I know what you mean. Some people are quite shocked when they have Asian food in Asia. what they know as Asian is often an Asian based corrupted/westernized dish. Interesting fact about the peanuts, I had to actually think for a second if the peanuts in India were gritty or smooth, they are more smooth I feel but then it depends on the quality. I have had a few times satay chicken but I never knew what style it was and of course I learned something here today, that satay is originally Indonesian. Thank you for sharing your take on this, gonna save it.

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 5:00 am

      Thanks Helene! I know what you mean about Asian food in Asia! It is like Indian food in India – here in Australia, it is insanely oily. INSANELY. When I read restaurant recipes for curries I am horrified at the amount of oil used. Curries in India are nowhere near as oily – and SO MUCH tastier! 🙂

      Reply
  12. Maureen | Orgasmic Chef says

    February 3, 2015 at 9:45 pm

    5 stars
    I LOVE satay chicken. My recipe is a bit different but it also uses peanut butter in the sauce. My marinade is a bit different. I’ll try yours next time. 🙂 This looks outstanding!

    Reply
    • Nagi | RecipeTin says

      February 4, 2015 at 5:00 am

      Oh, I must check out yours! I do love comparing recipes 🙂

      Reply
  13. Marissa | Pinch and Swirl says

    February 3, 2015 at 3:38 pm

    5 stars
    These skewers are absolutely mouthwatering! I completely agree about dolloping sauce versus thin sauce that drips everywhere.

    And I had no idea that satay originated in Indonesia. (I’m always learning from you, Nagi!!) That’s so interesting about the peanut texture too – I wonder why the difference?

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 7:09 pm

      Thanks Marissa! I had a reader say that if I kept blitzing, it should go smooth….but honestly, I blitzed for almost 15 minutes on high and it just didn’t go creamy. Maybe peanuts here are different. Over the years I’ve tried different brands but always the same problem. Maybe it works with peanuts in the US? In any case, my sauce is much easier!! Grounding peanuts is hard work 🙂

      Reply
  14. Allie | Baking a Moment says

    February 3, 2015 at 10:32 am

    I absolutely adore satay, and I had no idea there were so many different versions from different countries! This one sounds fantastic and very simple indeed. Love how thick it is, all the better to pile it on! 😉

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 7:13 pm

      Thanks Allie! I’m with you, gotta PILE the sauces on!! 🙂

      Reply
  15. Caroline @ Shrinking Single says

    February 3, 2015 at 10:13 am

    Interesting that the Australian peanuts seem different and won’t go smooth. How pesky of them. I wonder what the difference is. This looks amazing and I love satay sauce. One of my absolute favourite foods – with or without the protein! The dollopy the better.

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 7:14 pm

      Hi Caroline – have you tried grounding peanuts and found they go smooth?? Popping over to check your blog! In any case, I prefer my version because it’s EASIER!! 🙂

      Reply
  16. Tammi @ Insatiable Munchies says

    February 3, 2015 at 10:00 am

    HAHA “same same but different”. I’m from Singapore, so I can attest to the complexity of the different satay recipes. Well done on creating a simple and quick version that still looks authentic! Good on you. =)

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 7:17 pm

      Thank you! It took a few goes before you couldn’t tell it was made with peanut butter. 🙂 Much easier than grounding peanuts!! 🙂

      Reply
  17. ChopinandMysaucepan says

    February 3, 2015 at 9:27 am

    Dear Nagi,

    I grew up in Malaysia and this recipe is bringing back a lot of fond childhood memories. Thanks for sharing something special with us.

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 7:14 pm

      Thank you so much!! Satay brings back many fond memories for me too of my travels throughout SE Asia 🙂

      Reply
  18. Kathleen | HapaNom says

    February 3, 2015 at 9:21 am

    5 stars
    So funny – I swear, I just made chicken satay this weekend! I think we must have some weird foodie e.s.p. going on 😉 This is one of my very favorite dishes and one that my husband asks for all the time! I generally make a Thai version so I’m very interested to try Indonesian satay. I’m also very intrigued to make your peanut sauce. I started off doing it the old school way – mortar and pestle (good, but way too much work). Your recipe sounds so much easier and all without cutting out any of the flavor. Can’t wait to give this dish a try!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 7:15 pm

      Of COURSE you make it the traditional way!! I tried that too when I was making this but the damn peanuts just won’t go smooth! It is hard work. My arm was tired – and the sauce was still gritty!! 🙂

      Reply
  19. Lisa Kaufer-Smithey says

    February 3, 2015 at 7:03 am

    5 stars
    Hi Nagi!
    I am SO interested in this peanut sauce recipe! A while back, I made chicken pad thai for dinner, (It took SO MUCH work, but I did not get the sauce right?) my daughter wanted peanut sauce which I did not know how to throw together to taste- what would you think if I made this sauce for pad thai ? Do you think that I could use this peanut sauce in other recipes and if so, could you name a few. 🙂 A challenge! I would like to surprise her with a great chicken pad thai with peanut sauce. You know how Mama’s are, wanting to take care of their children.. even if they are 23 😉 I love the thought of a platter filled with chicken skewers….

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 8:09 am

      Hi Lisa! You will love this peanut sauce, “our” kind of flavour! Pad Thai doesn’t actually use a peanut sauce like this. But I will share a pad thai recipe soon! You can use this sauce for beef and pork skewers (same recipe as this one), drizzle over steamed vegetables served over rice with slices of boiled egg on the side (this is called Gado Gado and it is a traditional Indonesian dish), make a stir fry (with or without noodles) with fairly light flavours and drizzle this over the top or serve on the side. The recipe for a peanut sauce to use IN stir fries and fried rice is different – it is thinner with stronger flavours so it disperses throughout the ingredients better. This one is too thick and if you thin it with water to use as a stir fry sauce, the flavour isn’t strong enough. I will share one soon to use in stir fries! If I forget, shoot me an email to remind me! 🙂 PS I’m thirty-something and my Mama still wants to take care of us kids 🙂 We love it!

      Reply
  20. Rhonda says

    February 3, 2015 at 7:02 am

    Nagi,
    I just found your blog a couple weeks ago. I have had bariatric surgery, (weight loss) and I have looking for recipes that are high in protein, and SIMPLE to make with( ingredients I have in my house (mostly)!
    Thank you, thank you so much. My family is happy and we are eating more variety, and ooooohhh sooo tasty!
    The ribs you posted last week were amazing!! seasoned them in the morning, came home at lunch and cooked them up in my slow cooker as I had meetings that evening…. husband and son were nice enough to leave me a couple after their feasting on it!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 8:11 am

      Hi Rhonda! I am so glad you are enjoying my recipes! You will find plenty of high protein recipes here, I love my protein! 🙂 I am glad you enjoyed the ribs! Isn’t the sauce amazing? I love it so much, and it’s crazy easy! Great idea to throw it all in the slow cooker, though I thought the sauce would not thicken up enough to coat the ribs “jam” like? 🙂

      Reply
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