This term is used in much of Southeast Asia and implies a chili-hot relish or else any dish that has been cooked with a paste of red chiles.
A cautionary tale: A family friend once brought us a jar labelled Sambal olek as a token from his journeys. Being inveterate and tough salsa consumers, we figured it would be no big deal. Boy, were we wrong. The toughest among us still quake at the thought of sambal olek. I don't know what became of the rest of the jar.