Hi,
I've just recovered from a similar sounding problem on my 2004 2.2jd, i.e. the same car as far as electrics go I think.
And sorry if I digress for a moment, but I'm using this as an excuse to write about the problems I had with the light to help others in the future.
The problem I had was a steamed up near side headlight. I also had a short which meant that the headlight angle adjustment would cycle up and down when the hazards were on.
I couldn't see any entry point for the water so I took the wheel off, the wheel arch cover off and then removed the bumper.
That allowed me to see the whole headlight, including the bottom sump which was hidden by the bumper and had about a litre of water in it.
I checked out replacement lights which were very expensive at £300 to £400. So I removed the light fitting and dried it out. Once removed I could see two faults.
Firstly on the outside section of the fitting closest to the wing there was a 1cm wide circular hole. I touched the plastic there and a bit more crumbled away. The plastic was either designed to be thin in that area as it looked like a knock out section, or was mis manufactured. So I dried the light and closed the hole with araldite glue. Water entry problem solved.
The second problem was that the terminals at the back of the light were corroded, presumably due to the water in the light, so I had to scrape the green oxide off before reconnecting the light. That solved my problem with the hazards and the lights cycling up and down.
The good news for you is that your problem may just be corroded terminals, which is really quick to solve if it is.
If you lift the bonnet and look down onto the light there are two large ports for the headlight and main beam bulbs, below this there is an oblong socket. It has a red tab on one side which is what locks it in place, you have to carefully work the tab out before removing the plug. I recommend getting a hand mirror to help you see what's going on as there was no way I could get a good view It withdraws at least a cm and waggling the plug periodically helps to free it. Then if your problem is as mine was you'll find the terminals are all green inside the plug.
It should only take a few minutes to find out if the terminals are green. The bad news is that if they are you need to clean both the plug and socket, and I can't see how you could clean the socket without removing the headlight. It's easy to do but it takes a couple of hours and I advise buying a workshop manual to help you find all the screws.
Also, once both plug and socket are clean, put a little vasaline (petrolium jelly) on the contacts of the socket. Once terminals are correded, they corrode again faster. Vasaline conducts and keeps water out, just dont smear it across all the terminals, a little dab on eack contact from a thin blade screwdriver will work.
Sadly, as is the case with all electrics, it could be a number of other things, The indicator stalks seem another likely cause to me.
I give credit here to the moderator made the comment that there are no answers because everyone who has solved their problems is to lazy/selfish to call back and give answers. Made me feel guilty for past sins so I came back.