Indonesian Peanut Sauce Recipe
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Peanut sauce (saus kacang) is a common sauce in Indonesian cooking. It’s paired with satay and fried snacks, and used as a dressing for gado gado or spooned over lontong rice, vegetables, or fried potatoes.
This vegan sauce is made with peanut butter, garlic, chili, palm sugar, sweet soy sauce, and citrus. It balances salty, sweet, and sour flavors with mild heat.

How to Make Indonesian Peanut Sauce
The sauce starts by gently cooking garlic and chili paste in a little oil or butter over low heat. Peanut butter, palm sugar, and sweet soy sauce are stirred in until smooth. A splash of acidity is added, followed by warm water until the desired consistency is reached.
You can adjust the heat with more or less chili paste, or thin the sauce with extra water for pouring consistency. For a sweeter sauce, add a little more palm sugar.
If you’re new to ingredients like palm sugar or sweet soy sauce, you can read more in my guide to Indonesian ingredients.

Peanut Sauce: Thick for Satay, Thin for Gado Gado
For satay, keep the peanut sauce thick so it clings to skewers and doesn’t drip. Add just enough water for a smooth, spoonable sauce.
For gado gado, thin the sauce further so it pours easily over vegetables. Add warm water a little at a time until it reaches a dressing-like consistency.
If you’re serving this with gado gado, see my full Gado Gado recipe for assembling the salad.
Continue below for the full recipe with ingredients and step-by-step instructions.
Indonesian Peanut Sauce
A smooth sauce made with peanut butter, garlic, chili, palm sugar, and
sweet soy sauce. Used for satay, vegetables, and rice dishes.
This peanut sauce fits vegetarian, vegan, dairy-free, and gluten-free diets.
Ingredients
- 1 tbsp neutral oil or butter
- 1 garlic clove, finely chopped
- ½ tsp chili paste (sambal oelek)
- ½ cup creamy peanut butter
- 1 tbsp palm sugar (gula jawa), finely grated
- 2 tbsp sweet soy sauce (kecap manis)
- 1 tbsp white vinegar or lemon juice
- Warm water, added gradually
- Salt, to taste
- Black pepper, to taste
Instructions
- Heat a small saucepan over low heat. Add oil or butter and let it melt.
- Add garlic and chili paste. Stir constantly until fragrant. Do not let it brown.
- Add peanut butter. Stir until smooth.
- Add palm sugar and sweet soy sauce. Stir well.
- Add vinegar or lemon juice.
- Add warm water a little at a time, stirring constantly, until the desired consistency is reached. The sauce thickens as it cools. Aim for a slightly thinner consistency while it’s hot.
- Keep the heat low and continue stirring to prevent burning.
- Season with a little salt and pepper.
- Remove from heat and serve warm.
Notes
Store leftover peanut sauce in an airtight container in the fridge for up to 4 days. Freeze for up to 2 months. Reheat gently on the stove or in the microwave, stirring well and adding a little water to loosen the sauce.
Nutrition Information:
Yield: 4 Serving Size: 1Amount Per Serving: Calories: 237Total Fat: 18gSaturated Fat: 5gUnsaturated Fat: 13gCholesterol: 8mgSodium: 404mgCarbohydrates: 15gFiber: 2gSugar: 9gProtein: 7g
The nutritional information provided is automatically calculated. These figures should be considered estimates.


