I think I got. You're using LinearLayout, your ViewPager is above your PagerIndicator, so the white color is the background color of the view. You can solve this using RelativeLayout and put:
android:layout_alignParentBottom="true"
in your PagerIndicator.
Try something like this:
<RelativeLayout
xmlns:android="http://schemas.android.com/apk/res/android"
xmlns:app="http://schemas.android.com/apk/res-auto"
android:layout_width="fill_parent"
android:layout_height="fill_parent">
<android.support.v4.view.ViewPager
android:id="@+id/pager"
android:layout_width="fill_parent"
android:layout_height="fill_parent"
/>
<com.viewpagerindicator.LinePageIndicator
android:id="@+id/indicator"
style="@style/CustomLinePageIndicator"
android:layout_width="fill_parent"
android:layout_height="10dp"
android:layout_alignParentBottom="true"
android:padding="5dip"
app:lineWidth="30dp"
app:selectedColor="#FF24248F"
app:strokeWidth="4dp"
app:unselectedColor="#FF8FB28F"
/>
</RelativeLayout>