Abstract: This article explores the colonial land tenure system which evolved in the municipalities of the Dutch Indies in the early twentieth century, resulting in structural differences in urban property ownership. The development of a formal and informal property regime during this period created the logic of racialised capitalism that underpinned settler colonialism. By looking at the actions of the Indo-Europeesche Verbond (IEV), the main Indo-European political party, this article seeks to understand why settler colonialism failed in the Dutch Indies. It finds that the success of the settler colonialism project depended on its relationship with global capitalism and imperial support. This study also finds that structural differences in property ownership have continued in postcolonial Indonesia.