diff --git a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt
index 424512ad6f9..877968ef3c0 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/KotlinCommonBlock.kt
@@ -529,6 +529,18 @@ private val INDENT_RULES = arrayOf<NodeIndentStrategy>(
                 }
                 .set(Indent.getNormalIndent()),
 
+        strategy("Property initializer")
+                .within(KtNodeTypes.PROPERTY)
+                .forElement {
+                    it.psi is KtExpression
+                }
+                .set { settings ->
+                    if (settings.kotlinCustomSettings.CONTINUATION_INDENT_FOR_EXPRESSION_BODIES)
+                        Indent.getContinuationWithoutFirstIndent()
+                    else
+                        Indent.getNormalIndent()
+                },
+
         strategy("Indent for parts")
                 .within(KtNodeTypes.PROPERTY, KtNodeTypes.FUN, KtNodeTypes.DESTRUCTURING_DECLARATION, KtNodeTypes.SECONDARY_CONSTRUCTOR)
                 .notForType(KtNodeTypes.BLOCK, FUN_KEYWORD, VAL_KEYWORD, VAR_KEYWORD, CONSTRUCTOR_KEYWORD, KtTokens.RPAR)
diff --git a/idea/testData/formatter/PropertyInitializerLineBreak.after.kt b/idea/testData/formatter/PropertyInitializerLineBreak.after.kt
index f5b73e7faec..e955975d155 100644
--- a/idea/testData/formatter/PropertyInitializerLineBreak.after.kt
+++ b/idea/testData/formatter/PropertyInitializerLineBreak.after.kt
@@ -1,6 +1,11 @@
 val x: Int = 1
 
+val y: Int =
+    2
+
 fun foo() = 1
 
 fun bar() =
     1
+
+// SET_FALSE: CONTINUATION_INDENT_FOR_EXPRESSION_BODIES
diff --git a/idea/testData/formatter/PropertyInitializerLineBreak.kt b/idea/testData/formatter/PropertyInitializerLineBreak.kt
index c2f3752f400..b2a841901a9 100644
--- a/idea/testData/formatter/PropertyInitializerLineBreak.kt
+++ b/idea/testData/formatter/PropertyInitializerLineBreak.kt
@@ -1,8 +1,13 @@
 val x: Int
-   = 1
+        = 1
+
+val y: Int =
+        2
 
 fun foo()
-    = 1
+        = 1
 
 fun bar() =
         1
+
+// SET_FALSE: CONTINUATION_INDENT_FOR_EXPRESSION_BODIES