Nostalgic Indonesian Peanut Sauce Recipe
Introduction
This rich and flavorful peanut sauce is a perfect companion for grilled meats, vegetables, or as a dip. Combining roasted peanuts with aromatic spices and a touch of sweetness, it offers a delicious balance of savory, tangy, and spicy notes.

Ingredients
- 150g dry roasted peanuts
- 50ml vegetable oil
- 1 tbsp tamarind concentrate or paste
- 3 tbsp gula melaka palm sugar, or dark brown soft sugar
- 1 tsp ground coriander
- 1 tbsp kecap manis (sweet soy sauce)
- 8 dried red chillies, soaked in warm water for 20 mins, drained, deseeded and roughly chopped
- 3 garlic cloves, roughly chopped
- 4 shallots, peeled and roughly chopped
- 1 lemongrass stalk, trimmed and roughly chopped
- 1.5cm piece of galangal, peeled and roughly chopped
Instructions
- Step 1: Blitz the peanuts in a food processor until finely chopped but still retaining some texture. Transfer to a bowl and clean out the food processor.
- Step 2: Add the dried chillies, garlic, shallots, lemongrass, galangal, and tamarind concentrate to the food processor. Blitz until smooth, adding a few tablespoons of water if needed to help blend.
- Step 3: Heat the vegetable oil in a non-stick saucepan over medium heat. Fry the spice paste until fragrant, about 3-5 minutes.
- Step 4: Stir in the ground peanuts, tamarind, palm sugar, 1 tsp salt, ground coriander, kecap manis, and 200ml water. Mix well and taste for seasoning.
- Step 5: Cook over medium-low heat for 15 minutes, stirring continuously until the oil separates from the sauce.
- Step 6: Remove from heat and allow the sauce to cool completely. Transfer to a sterilised jar or airtight container.
Tips & Variations
- For extra creaminess, add a splash of coconut milk during the cooking stage.
- Adjust the number of chillies to suit your preferred spice level.
- If you don’t have kecap manis, mix regular soy sauce with a little brown sugar as a substitute.
- Use roasted unsalted peanuts for the best flavor and texture.
Storage
Store the peanut sauce in an airtight container in the refrigerator for up to two weeks. Before using, give it a good stir. Reheat gently on the stove or microwave if needed, stirring occasionally to maintain texture.
How to Serve

Serve this delicious recipe with your favorite sides.
FAQs
Can I make this peanut sauce ahead of time?
Yes, this sauce tastes even better after resting for a few hours or overnight, allowing the flavors to meld together.
Is this sauce suitable for vegans?
Yes, the ingredients are plant-based, making this peanut sauce suitable for vegans and vegetarians alike.
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Nostalgic Indonesian Peanut Sauce Recipe
- Total Time: 35 minutes
- Yield: Approximately 300ml of peanut sauce 1x
- Diet: Halal
Description
A rich and flavorful Indonesian-style peanut sauce made with dry roasted peanuts, aromatic spices, tamarind, and sweet soy sauce. This versatile sauce is perfect as a dip, dressing, or accompaniment to grilled meats, vegetables, and noodles.
Ingredients
Peanut Sauce
- 150g dry roasted peanuts
- 50ml vegetable oil
- 1 tbsp tamarind concentrate or paste
- 3 tbsp gula melaka palm sugar or dark brown soft sugar
- 1 tsp ground coriander
- 1 tbsp kecap manis (sweet soy sauce)
- 8 dried red chillies, soaked in warm water for 20 mins, drained, deseeded and roughly chopped
- 3 garlic cloves, roughly chopped
- 4 shallots, peeled and roughly chopped
- 1 lemongrass stalk, trimmed and roughly chopped
- 1.5cm piece of galangal, peeled and roughly chopped
Instructions
- Prepare Peanuts: Blitz the dry roasted peanuts in a food processor until they are finely chopped but still retain a bit of texture. Remove the chopped peanuts to a bowl and clean out the food processor.
- Make Spice Paste: Add the soaked and prepared dried red chillies, garlic cloves, shallots, lemongrass, galangal, tamarind paste, gula melaka (or brown sugar), ground coriander, and kecap manis into the food processor. Blitz until completely smooth, adding a few tablespoons of water if necessary to help the paste blend smoothly.
- Cook Paste: Heat the vegetable oil in a non-stick saucepan over medium heat. Fry the spice paste until fragrant, which should take a few minutes, stirring frequently to prevent burning.
- Add Ingredients: Stir in the chopped peanuts, tamarind paste, sugar, 1 teaspoon salt, ground coriander, kecap manis, and 200ml water. Mix everything thoroughly until combined.
- Simmer Sauce: Cook the sauce over medium-low heat for 15 minutes, stirring continuously to prevent sticking. Cook until the oil separates from the sauce, indicating it is done.
- Cool and Store: Remove the saucepan from the heat and allow the peanut sauce to cool completely. Once cooled, decant it into a sterilized jar or airtight container. Store in the refrigerator and use within two weeks.
Notes
- You can adjust the number of dried chillies depending on your preferred heat level.
- If the sauce is too thick, add a little more water while simmering to reach desired consistency.
- Use gula melaka (palm sugar) for a more authentic flavor; dark brown sugar is a suitable substitute.
- The sauce pairs wonderfully with grilled meats, satay, steamed vegetables, or as a dressing for noodle dishes.
- Store the sauce refrigerated in an airtight container for up to two weeks.
- Prep Time: 15 minutes
- Cook Time: 20 minutes
- Category: Sauce
- Method: Frying
- Cuisine: Indonesian
Keywords: Peanut sauce, Indonesian peanut sauce, satay sauce, spicy peanut dip, homemade peanut sauce, kecap manis sauce, tamarind peanut sauce

