diff --git a/application/src/main/java/org/thingsboard/server/service/install/SqlAbstractDatabaseSchemaService.java b/application/src/main/java/org/thingsboard/server/service/install/SqlAbstractDatabaseSchemaService.java
index 9e137c3f09..ac6889cc1e 100644
--- a/application/src/main/java/org/thingsboard/server/service/install/SqlAbstractDatabaseSchemaService.java
+++ b/application/src/main/java/org/thingsboard/server/service/install/SqlAbstractDatabaseSchemaService.java
@@ -44,9 +44,11 @@ public abstract class SqlAbstractDatabaseSchemaService implements DatabaseSchema
     private InstallScripts installScripts;
 
     private final String schemaSql;
+    private final String schemaIdxSql;
 
-    protected SqlAbstractDatabaseSchemaService(String schemaSql) {
+    protected SqlAbstractDatabaseSchemaService(String schemaSql, String schemaIdxSql) {
         this.schemaSql = schemaSql;
+        this.schemaIdxSql = schemaIdxSql;
     }
 
     @Override
@@ -60,6 +62,15 @@ public abstract class SqlAbstractDatabaseSchemaService implements DatabaseSchema
             conn.createStatement().execute(sql); //NOSONAR, ignoring because method used to load initial thingsboard database schema
         }
 
+        if (schemaIdxSql != null) {
+            log.info("Installing SQL DataBase schema indexes part: " + schemaIdxSql);
+
+            Path schemaIdxFile = Paths.get(installScripts.getDataDir(), SQL_DIR, schemaIdxSql);
+            try (Connection conn = DriverManager.getConnection(dbUrl, dbUserName, dbPassword)) {
+                String sql = new String(Files.readAllBytes(schemaIdxFile), Charset.forName("UTF-8"));
+                conn.createStatement().execute(sql); //NOSONAR, ignoring because method used to load initial thingsboard database schema
+            }
+        }
     }
 
 }
diff --git a/application/src/main/java/org/thingsboard/server/service/install/SqlEntityDatabaseSchemaService.java b/application/src/main/java/org/thingsboard/server/service/install/SqlEntityDatabaseSchemaService.java
index 9181cff902..83a780a62c 100644
--- a/application/src/main/java/org/thingsboard/server/service/install/SqlEntityDatabaseSchemaService.java
+++ b/application/src/main/java/org/thingsboard/server/service/install/SqlEntityDatabaseSchemaService.java
@@ -25,6 +25,6 @@ import org.thingsboard.server.dao.util.SqlDao;
 public class SqlEntityDatabaseSchemaService extends SqlAbstractDatabaseSchemaService
         implements EntityDatabaseSchemaService {
     public SqlEntityDatabaseSchemaService() {
-        super("schema-entities.sql");
+        super("schema-entities.sql", "schema-entities-idx.sql");
     }
 }
diff --git a/application/src/main/java/org/thingsboard/server/service/install/SqlTsDatabaseSchemaService.java b/application/src/main/java/org/thingsboard/server/service/install/SqlTsDatabaseSchemaService.java
index 1f11ad78e5..42ba9812de 100644
--- a/application/src/main/java/org/thingsboard/server/service/install/SqlTsDatabaseSchemaService.java
+++ b/application/src/main/java/org/thingsboard/server/service/install/SqlTsDatabaseSchemaService.java
@@ -25,6 +25,6 @@ import org.thingsboard.server.dao.util.SqlTsDao;
 public class SqlTsDatabaseSchemaService extends SqlAbstractDatabaseSchemaService
         implements TsDatabaseSchemaService {
     public SqlTsDatabaseSchemaService() {
-        super("schema-ts.sql");
+        super("schema-ts.sql", null);
     }
 }
\ No newline at end of file
diff --git a/dao/src/main/resources/sql/schema-entities-idx.sql b/dao/src/main/resources/sql/schema-entities-idx.sql
new file mode 100644
index 0000000000..59785ae758
--- /dev/null
+++ b/dao/src/main/resources/sql/schema-entities-idx.sql
@@ -0,0 +1,23 @@
+--
+-- Copyright © 2016-2019 The Thingsboard Authors
+--
+-- Licensed under the Apache License, Version 2.0 (the "License");
+-- you may not use this file except in compliance with the License.
+-- You may obtain a copy of the License at
+--
+--     http://www.apache.org/licenses/LICENSE-2.0
+--
+-- Unless required by applicable law or agreed to in writing, software
+-- distributed under the License is distributed on an "AS IS" BASIS,
+-- WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+-- See the License for the specific language governing permissions and
+-- limitations under the License.
+--
+
+CREATE INDEX IF NOT EXISTS idx_alarm_originator_alarm_type ON alarm(tenant_id, type, originator_type, originator_id);
+
+CREATE INDEX IF NOT EXISTS idx_event_type_entity_id ON event(tenant_id, event_type, entity_type, entity_id);
+
+CREATE INDEX IF NOT EXISTS idx_relation_to_id ON relation(relation_type_group, to_type, to_id);
+
+CREATE INDEX IF NOT EXISTS idx_relation_from_id ON relation(relation_type_group, from_type, from_id);
diff --git a/dao/src/main/resources/sql/schema-entities.sql b/dao/src/main/resources/sql/schema-entities.sql
index bfe8b161eb..2903ca2fb1 100644
--- a/dao/src/main/resources/sql/schema-entities.sql
+++ b/dao/src/main/resources/sql/schema-entities.sql
@@ -37,8 +37,6 @@ CREATE TABLE IF NOT EXISTS alarm (
     type varchar(255)
 );
 
-CREATE INDEX IF NOT EXISTS idx_alarm_originator_alarm_type ON alarm(tenant_id, type, originator_type, originator_id);
-
 CREATE TABLE IF NOT EXISTS asset (
     id varchar(31) NOT NULL CONSTRAINT asset_pkey PRIMARY KEY,
     additional_info varchar,
@@ -143,8 +141,6 @@ CREATE TABLE IF NOT EXISTS event (
     CONSTRAINT event_unq_key UNIQUE (tenant_id, entity_type, entity_id, event_type, event_uid)
 );
 
-CREATE INDEX IF NOT EXISTS idx_event_type_entity_id ON event(tenant_id, event_type, entity_type, entity_id);
-
 CREATE TABLE IF NOT EXISTS relation (
     from_id varchar(31),
     from_type varchar(255),
@@ -156,10 +152,6 @@ CREATE TABLE IF NOT EXISTS relation (
     CONSTRAINT relation_pkey PRIMARY KEY (from_id, from_type, relation_type_group, relation_type, to_id, to_type)
 );
 
-CREATE INDEX IF NOT EXISTS idx_relation_to_id ON relation(relation_type_group, to_type, to_id);
-
-CREATE INDEX IF NOT EXISTS idx_relation_from_id ON relation(relation_type_group, from_type, from_id);
-
 CREATE TABLE IF NOT EXISTS tb_user (
     id varchar(31) NOT NULL CONSTRAINT tb_user_pkey PRIMARY KEY,
     additional_info varchar,
@@ -215,8 +207,7 @@ CREATE TABLE IF NOT EXISTS widgets_bundle (
 );
 
 CREATE TABLE IF NOT EXISTS rule_chain (
-    id varchar(31) NOT NULL CONSTRAINT rule_chCREATE INDEX IF NOT EXISTS idx_event_type_entity_id ON event(tenant_id, event_type, entity_type, entity_id);
-ain_pkey PRIMARY KEY,
+    id varchar(31) NOT NULL CONSTRAINT rule_chain_pkey PRIMARY KEY,
     additional_info varchar,
     configuration varchar(10000000),
     name varchar(255),
diff --git a/dao/src/test/java/org/thingsboard/server/dao/SqlDaoServiceTestSuite.java b/dao/src/test/java/org/thingsboard/server/dao/SqlDaoServiceTestSuite.java
index 26fbc71b36..6dee664716 100644
--- a/dao/src/test/java/org/thingsboard/server/dao/SqlDaoServiceTestSuite.java
+++ b/dao/src/test/java/org/thingsboard/server/dao/SqlDaoServiceTestSuite.java
@@ -30,7 +30,7 @@ public class SqlDaoServiceTestSuite {
 
     @ClassRule
     public static CustomSqlUnit sqlUnit = new CustomSqlUnit(
-            Arrays.asList("sql/schema-ts.sql", "sql/schema-entities.sql", "sql/system-data.sql", "sql/system-test.sql"),
+            Arrays.asList("sql/schema-ts.sql", "sql/schema-entities.sql", "sql/schema-entities-idx.sql", "sql/system-data.sql", "sql/system-test.sql"),
             "sql/drop-all-tables.sql",
             "sql-test.properties"
     );
diff --git a/pom.xml b/pom.xml
index 66e5561fe3..d62b1673fb 100755
--- a/pom.xml
+++ b/pom.xml
@@ -75,7 +75,7 @@
         <jts.version>1.15.0</jts.version>
         <bouncycastle.version>1.56</bouncycastle.version>
         <winsw.version>2.0.1</winsw.version>
-        <hsqldb.version>2.4.0</hsqldb.version>
+        <hsqldb.version>2.5.0</hsqldb.version>
         <dbunit.version>2.5.3</dbunit.version>
         <spring-test-dbunit.version>1.2.1</spring-test-dbunit.version>
         <postgresql.driver.version>9.4.1211</postgresql.driver.version>