I feel sad when I see someone has used manual spaces for indents rather than tabs. My sadness is not because of the person's lack of word processing skills. Rather, I am sad because of all the extra time that the person spent hitting the space bar when they could have used that time for writing instead. :)
(1) Type your story.
(2) Ctrl + A to select all text.
(3) Make sure your ruler is visible.
(4) Find the hourglas-looking tabs at the top left of the ruler.
(5) Grab the top tab and drag it to where you want your indent (presumably 0.5 inch).