diff --git a/ledger-mode.el b/ledger-mode.el
index bdd1b5e94..589dbc2a2 100644
--- a/ledger-mode.el
+++ b/ledger-mode.el
@@ -325,7 +325,7 @@ With a prefix argument, remove the effective date."
   (ledger-init-load-init-file)
   (setq-local comment-start ";")
   (setq-local indent-line-function #'ledger-indent-line)
-  (setq-local indent-region-function 'ledger-post-align-postings))
+  (setq-local indent-region-function #'ledger-indent-region))
 
 ;;;###autoload
 (add-to-list 'auto-mode-alist '("\\.ledger\\'" . ledger-mode))
diff --git a/ledger-post.el b/ledger-post.el
index 66c97e96b..c960c4406 100644
--- a/ledger-post.el
+++ b/ledger-post.el
@@ -140,6 +140,20 @@ Looks only as far as END, if supplied, otherwise `point-max'."
   (when ledger-post-auto-align
     (ledger-post-align-postings (line-beginning-position) (line-end-position))))
 
+(defun ledger-indent-region (beg end)
+  "Indent the region from BEG to END.
+This works by calling `ledger-indent-line' for each line."
+  (save-excursion
+    (goto-char beg)
+    (beginning-of-line)
+    (ledger-indent-line)
+    (while (< (point) end)
+      (forward-line)
+      (ledger-indent-line))
+    (when (progn (beginning-of-line)
+                 (looking-at-p "^[[:space:]]*$"))
+      (delete-region (point) (line-end-position)))))
+
 (defun ledger-post-align-dwim ()
   "Align all the posting of the current xact or the current region.
 
diff --git a/test/post-test.el b/test/post-test.el
index 1d913fa36..ea66cbf9a 100644
--- a/test/post-test.el
+++ b/test/post-test.el
@@ -258,7 +258,7 @@ http://bugs.ledger-cli.org/show_bug.cgi?id=924"
 "
     (indent-region (point-min) (point-max))
     (should
-     (equal (buffer-string)
+     (equal (buffer-substring-no-properties (point-min) (point-max))
             "1994/01/10 * Mother
     Actif:Courant:BnpCc                       500,00 F  ; Étrennes
     Revenu:Autre:CadeauReçu
@@ -453,6 +453,22 @@ http://bugs.ledger-cli.org/show_bug.cgi?id=946"
     Assets:Bar
 " ))))
 
+(ert-deftest ledger-post/test-197 ()
+  "Regress test for Bug #197"
+  :tags '(post regress)
+  (ledger-tests-with-temp-file
+      "2019/08/13 Test
+this  8000 GBP
+out"
+    (let ((ledger-post-auto-align nil))
+      (set-mark-command nil)
+    (goto-char (point-max))
+    (call-interactively #'indent-for-tab-command)
+    (should (string= (buffer-substring-no-properties (point-min) (point-max))
+                           "2019/08/13 Test
+    this  8000 GBP
+    out")))))
+
 
 (provide 'post-test)