Fiery & Flavorful: Indonesian-Style Satay Sauce with Chili

Written by Sarah Gardner

If you’ve ever dipped a satay skewer into a rich, spicy, and slightly sweet sauce and thought, “This is it,” then you’ve had a glimpse of the magic that is Indonesian-style satay sauce with chili. This version brings the bold heat of red chilies, balanced perfectly with creamy peanut butter, aromatic spices, and a splash of coconut milk. Whether you’re making chicken satay with peanut sauce, a satay chicken stir fry, or even tofu satay, this fiery take will level up your entire satay game. It's bold, deeply savory, and absolutely addictive—aka the ultimate sauce satay lovers crave.

Indonesian-Style Satay Sauce with Chili

Prep Time 7 minutes
Cook Time 5 minutes
Total Time 12 minutes
Course Condiment, Dip
Cuisine Indonesian
Servings 1 cup (perfect for 4–6 satay skewers)

Equipment

  • Small saucepan to combine and heat your sauce evenly
  • Wooden spoon or whisk to stir and get a smooth consistency
  • Cutting board & knife for prepping your fresh ingredients

Ingredients
  

  • 1/2 cup natural peanut butter smooth or crunchy, your call
  • 1 tablespoon oil neutral, like canola or peanut oil
  • 2 –3 red chilies finely chopped (adjust based on your spice preference)
  • 2 garlic cloves minced
  • 1 teaspoon grated fresh ginger
  • 1 tablespoon kecap manis sweet soy sauce, key to Indonesian flavor
  • 2 tablespoons regular soy sauce
  • 1 tablespoon tamarind paste or lime juice for a more citrusy profile
  • 1 tablespoon brown sugar
  • 1/2 cup coconut milk
  • 2 tablespoons water to adjust consistency
  • Optional: crushed peanuts for garnish

Instructions
 

Heat oil in a saucepan over medium heat.

  1. Add the chopped chilies, garlic, and ginger. Sauté for 1–2 minutes until fragrant.

Stir in the peanut butter

  1. kecap manis, soy sauce, tamarind paste, and brown sugar. Stir constantly to avoid burning.

Pour in the coconut milk and stir to combine.

  1. Simmer for 2–3 minutes until the sauce thickens slightly.

Add water as needed to get your preferred consistency

  1. thicker for dipping, thinner for drizzling.

Taste and adjust

  1. add more soy for salt, more sugar for sweetness, or extra chili if you like it hot.
  2. Serve warm, or cool and store in the fridge for up to a week.

Pairings

This spicy peanut satay sauce recipe is perfect for a variety of satay styles. Spoon it generously over chicken satay with peanut sauce or dunk your beef satay and pork satay skewers right into it. It’s also a knockout over grilled tofu satay, satay noodles, or even as a punchy drizzle on a satay chicken stir fry.

Planning a backyard grill? Make a quick chicken satay marinade, grill up some satay skewers, and serve this easy satay sauce on the side for dipping. Want something vegetarian? Toss this sauce over steamed veggies and rice for a speedy satay-style Buddha bowl.

FAQs

1. Is this the same as an easy peanut sauce?

It’s similar, but this Indonesian-style version has a distinct flavor profile—spicy chilies, sweet soy, and a tangy hit from tamarind or lime juice make it more layered than your basic easy peanut sauce.

2. What meat works best with this satay sauce?

Chicken thighs are ideal—they hold flavor well and stay juicy, especially with a good chicken satay marinade. Beef sirloin and pork shoulder also work great. For meatless meals, tofu satay is a solid choice—it soaks up all that rich peanut satay flavor beautifully.

3. How spicy is this sauce?

It’s a medium heat depending on the chilies you use. You can tone it down by deseeding the peppers or turn it up with a splash of sambal or more fresh chili.

4. Can I use this sauce cold?

Yes! It’s fantastic cold or room temperature, especially with satay noodles or as a dipping sauce for chilled rice paper rolls.

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