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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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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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166 Comments

  1. Immaculate says

    February 3, 2015 at 5:47 am

    5 stars
    Nagi, this looks quite tempting !! Chicken satay it also pretty common in Africa . We use puree peanuts with our own indigenous spices then smother on the beef skewers before grilling- yum. I agree 100% the sauce kicks it up a notch. GREAT PICS!!!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:46 am

      Thanks Imma! I must pop over to your blog and have a look! I love finding new satay recipes 🙂

      Reply
  2. mila furman says

    February 3, 2015 at 5:24 am

    Nagi… this looks phenomenal! I love how you go into detail about each type of sauce and style~ I may have to make this easy one!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:47 am

      Thanks Mila!! 🙂

      Reply
  3. Rachel (Rachel's Kitchen NZ) says

    February 3, 2015 at 4:10 am

    Mmmm – delicious – Nagi – styling is great:)

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:47 am

      Thanks Rachel, you’re so kind!! 🙂

      Reply
  4. Kristen @ The Endless Meal says

    February 3, 2015 at 3:44 am

    5 stars
    How did you know I’ve been craving peanut satay lately? This looks amazing!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:53 am

      Thanks Kristen! I just saw your sticky Harissa chicken – WOWEE!! I know the next chicken I’M making!! 🙂

      Reply
  5. nicole (thespicetrain.com) says

    February 3, 2015 at 3:29 am

    I love chicken satay with peanut sauce! Didn’t know it was originally from Indonesia. Very nice photos with some really excellent food styling! Well done! 🙂

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:53 am

      Awww, thanks Nicole! I feel like I just got praised by my teacher!! 🙂

      Reply
  6. Shinee says

    February 3, 2015 at 3:23 am

    My mouth is watering right now, reading this post! Oh my, I don’t think I ever had Satay chicken, but this needs to be fixed asap!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:55 am

      Thanks Shinee! Hope you do try it, the Peanut Sauce is crazy delicious!!

      Reply
  7. Susan says

    February 3, 2015 at 3:21 am

    I love Indonesian food, so I’m delighted to see the Indonesian version of Satay here. I think you could easily do the raw, authentic version of the peanut sauce. The reason the peanuts came out grainy is because you did not process them long enough. I’ve made a lot of peanut butter, and the trick to get it to come out smooth and silky is just to let the food processor run long enough. As I recall, getting peanuts to that stage takes only about 5 minutes (it’s been a while since I made peanut butter). The nuts go through a fairly long grainy stage, and then they suddenly become silky and shiny. I would love to try the authentic version, just because I’m big on authentic from any cuisine. I’ll have to try this version, too. 🙂

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:58 am

      Hi Susan, thanks for the tip!! I ran the food processor for 10 minutes, to the point I was worried it was overheating, but it still didn’t go smooth! I am wondering if it is the type of peanuts we get here in Australia. I just don’t know 🙂 I’ve tried it so many times! I would love to know if you do try the authentic version. I did find that even if the peanuts processed to be smooth, the sauce is really chunky, more like a paste, and doesn’t have quite the depth of flavour of other versions (simply because it has less flavourings). I am honestly convinced that the “authentic” recipe I have (which I got from Indonesian blogs and an Indonesian home cooking cookbook I got in Bali – they were the same recipe) is NOT the one used in restaurants. Even with the grainy problem I have, the flavour is different (less flavour).

      Reply
  8. Mira says

    February 3, 2015 at 12:33 am

    5 stars
    I haven’t tried Satai chicken, but I love chicken on a stick, so this one is a must try! Looks delicious! Love the sauce!

    Reply
    • Nagi | RecipeTin says

      February 3, 2015 at 6:59 am

      I love any meats on a stick! There is not enough meats on sticks!! 🙂

      Reply
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