Plot hole: In Raiders of the Lost Ark, Indy tells Marcus he doesn't believe in magic or superstition. However, in this movie, which is set a year before Raiders, Indy not only witnesses supernatural acts, but takes advantage of them to win the day (by using the incantation to ignite the stones at the end). Therefore, by Raiders Indy would not only believe in magic and superstition but would know they exist. Listed for this movie as it was made after Raiders.
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Suggested correction: Just because Indy saw magic and supernatural powers in India doesn't mean he should believe the stories revolving around the ark of the covenant. Stories can still just be stories and not believed even by witnesses of unexplained phenomena.
lionhead
Suggested correction: Indy saw some very surreal things and understands why people would form cultures and superstitions around them, but that doesn't mean he's concluded that it's necessarily "magic" or extrapolated that into a belief in superstition in general. You can read the end of Raiders, in which Indy suddenly orders Marion to shut her eyes when the Ark is opened, as being informed by the events in Temple of Doom and him knowing it's better to be safe than sorry regarding matters like this.
TonyPH