Had dinner last night. A group of people who worked with Cafe Straits is in the process of creating a new restaurant. It seems like the menu is similar to Cafe Straits although one of the managers told us that they're going to transition to items that are more Indonesian since the chef is Indonesian. We tried all but one of the items on their Happy Hour menu (everything $5) - the satay sauce was quite good - it's more spicy than traditional peanut sauces. I didn't care for the tuna tartare but my colleagues liked it. We also ordered Basil Spicy Chicken curry which was quite good. I think if they can work out the kinks and have a more focused menu, has promise. Prices are reasonable for Palo Alto though the range is quite large - entrees from $11 to $32. Will try the Indonesian entrees when I go there next.
The ABC license has transferred to a new owner.
Haven't been to Straits recently enough to tell if the menu is much different. Here's the website for the new place, http://www.indorestaurant.com/