Abstract This article studies the strategic disciplinary and productive function of the colonial penal system of the Dutch East Indies (1816–1942). Developing convict labour as the main punishment for minor public and labour offences, the Dutch colonial regime created an increasingly effective system of exploitation that weaved together colonial discipline, control, and coercion. This system was based on two major carceral connections : firstly, the interrelated development and employment of different coerced labour regimes, and, secondly, the disciplinary role of the legal-carceral regime within the wider colonial project, supporting not only the management of public order and labour control, but also colonial production systems. Punishment of colonial subjects through “administrative justice” (police law) accelerated in the second half of the nineteenth century, leading to an explosion in the number of convictions. The convict labour force produced by this carceral regime was vital for colonial production, supporting colonial goals such as expansion, infrastructure, extraction, and production. The Dutch colonial system was a very early, but quite advanced, case of a colonial carceral state.