Indonesian Chicken Satay with Peanut Sauce

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Chicken satay with peanut sauce is an Indonesian classic that’s hard to resist. Juicy, grilled chicken skewers come together with a rich, creamy peanut sauce that’s sweet, savory, and absolutely delicious.

A plate of chicken satay with peanut sauce, pickles, and fried shallots.

Chicken satay with peanut sauce is one of Indonesia’s most iconic street food treasures. Picture juicy, tender chicken skewers grilled to perfection over smoldering coals, each bite infused with smoky charred goodness. But the real star? That creamy, rich peanut sauce—sweet, savory, and just a little spicy—perfectly balancing the grilled chicken’s flavors.

Like its cousin, Sate Maranggi—beef satay with hints of lemongrass and galangal—chicken satay with peanut sauce is a beloved street food classic. And let’s not forget Sate Taichan, the fiery version that keeps things simple but delivers with a bright, spicy sambal. But they all share the same warm, smoky hug of the grill.

No Indonesian street food feast is complete without a plate of Mie Goreng or Nasi Goreng Kampung on the side. These comforting noodle and rice dishes round out the experience, with their bold, umami flavors. It’s the kind of meal that brings people together—where you can’t help but reach across the table for one more skewer, a spoonful of fried rice, and a sip of sweet iced tea to wash it all down.

Why You Will Love This Recipe

Juicy and tender meat – Chicken satay have tender and juicy meat inside even though you grill it until slightly charred.
Quick and easy – This is a super easy and quick recipe to make sate ayam at home.
Simple ingredients – The ingredients are simple and easy to get in Asian grocery store.
A tasty snack – It makes for a tasty snack or main dish that’s fun to share with family and friends.

Recipe Ingredients

Chicken satay with peanut sauce ingredients with labels.

Ingredient Notes

Chicken – Choose chicken thigh because the meat will be more juicy. It has more fat content than the breast part.

Garlic, shallots, galangal – Try to get the fresh ones if possible. If you don’t have the fresh galangal, you can get the powdered form.

Coriander seeds – Ground coriander or the fresh coriander seeds are fine to use.

Sweet soy sauce – Sweet soy sauce or kecap manis comes from Indonesia. The taste is unique with a nice blend of sweet and savoury. A lot of Indonesian dishes use sweet soy sauce.

Substitutions & Variations

If you’re allergic to peanuts, you can swap them with cashews or skip them altogether. Just use sweet soy sauce on the chicken satay instead.

Other meats like beef or pork work wonderfully in this recipe too. If you’re a beef lover, check out my Sate Maranggi recipe. Or, if you prefer satay without peanut sauce, Sate Taichan might be just the thing!

How to Make Chicken Satay

Step by step process photos of preparing the chicken and the marinade sauce.

STEP 1. Cut the chicken fillet into 1×1 cm dice, or adjust to your preference (Image 1). Set aside. In a food processor, blend the garlic, shallots, coriander seeds, galangal, and water until smooth (Image 2). Pour this mixture over the chicken in a bowl (Image 3). Add sweet soy sauce, lime juice, salt, mushroom powder, and pepper (Image 4).

Step by step process photos of preparing the chicken satay before roasting.

STEP 2. Mix the chicken cubes well with the seasoning (Image 5). Place them in a container and chill in the fridge for at least an hour or overnight (Image 6). When ready to cook, take out the marinated chicken from the chiller and thread the diced pieces onto skewers, about 3-5 pieces each, depending on size (Images 7, 8).

Step by step process photos of roasting the chicken satay.

STEP 3. Once the skewers are ready, set them aside (Image 9) and prepare a grill pan on the stove. Spray the pan with some cooking oil and heat over medium heat. Grill the satay until brown, slightly charred, and cooked through, about 7-10 minutes (Images 10, 11). Put roasted peanuts, garlic, shallots, red chilies, palm sugar, and water in a food processor (Image 12).

Step by step process photos of making the peanut sauce.

STEP 4. Blend the peanut sauce until smooth (Image 13). Pour it into a saucepan and cook over medium heat. Add lime leaves, sweet soy sauce, salt, and mushroom powder (Images 14, 15). Let it simmer and thicken (Image 16). Taste and adjust salt as needed. Once the sauce is thick and tasty, turn off the heat and let it cool. Serve the juicy chicken satay with the rich peanut sauce and enjoy!

Pro Tips

The best cut for chicken satay is the chicken thigh—it stays juicy and tender even after grilling.
If you can’t eat peanuts, drizzle some sweet soy sauce on top for a sweet, savory kick.
Skip the chilis in the peanut sauce if you’re not a fan of spicy food.
For extra flavor, marinate the chicken longer to let those spices really shine.
Soak the wooden skewers in water for 30 minutes before grilling to keep them from burning.
When you add the lime leaves, tear them slightly to release their fragrance and boost the flavor.

How to Serve

Prepare a serving plate. Pour a ladle of peanut sauce on the plate. You may separate the peanut sauce if preferred. Arrange the satay on top of the peanut sauce. Sprinkle with fried shallots. Add pickled cucumbers or sliced shallots and sliced chilis at the side and a lime wedge. Enjoy with steamed rice or rice cake (lontong)!

Pair it with hearty Indonesian soups like Soto Betawi or Soto Tangkar for a cozy meal. When it’s time for dessert, treat yourself to chewy Ongol Ongol, Bugis Mandi, or sweet, palm-sugar-filled Klepon. And don’t forget to finish it all off with a comforting cup of Wedang Jahe—Indonesian ginger tea that warms you from the inside out!

A plate of chicken satay with peanut sauce, some pickled cucumbers, lime wedge, fried shallots.

FAQs about Chicken Satay

Can I use chicken breast instead of chicken thigh in this chicken satay recipe?

Yes, you can. However, please note that chicken breast may not be as juicy as chicken thigh.

Can I use other nuts besides peanuts for the peanut sauce?

Yes, you can use cashew nuts to substitute peanuts. I have never tried other nuts, but you may experiment.

I don’t have sweet soy sauce. What should I substitute it with?

You can substitute sweet soy sauce with palm sugar. Just use a little and taste it.

Can I prepare Sate Ayam in advance?

Yes, you can marinate the chicken and keep it in the fridge for 2-3 days before roasting. Skewer the chicken in advance to save time, and grill an hour or two before serving.

Is Sate Ayam gluten-free?

The ingredients in the marinade are mostly gluten-free. Just make sure the sweet soy sauce does not contain wheat. Check the labels on the sweet soy sauce to confirm it does not contain gluten.

Storage

Non-grilled satay can be kept in the fridge for up to 3 days. If you have grilled the satay, it is highly recommended to eat it on the grilling day. Keep the grilled ones in the container in the fridge for up to 5 days.