The flag of Indiana was designed by Paul Hadley and officially adopted by the state of Indiana on May 31, 1917. It was the state's first official flag and has remained unchanged since then except for the creation of a statute to standardize the production of the flag.
The flag consists of a gold torch that represents liberty and enlightenment; the rays around the torch represent their far-reaching influence. The nineteen stars represent Indiana's place as the nineteenth state to join the United States. The thirteen stars in the outer loop symbolize the original Thirteen Colonies, the five inner stars represent the next five states added to the Union, and the one large star above the torch represents Indiana. (source)
Thank you Julie!