Which ones? Org mode's babel works fine with it. If you do something like this (loose, not precise babel syntax):
<<body>>=
if 1 == 1:
print('1 == 1, shocking!')
<<function>>=
def foo():
<<body>>
It will generate properly indented code when tangled as in:
def foo():
if 1 == 1
print('1 == 1, shocking!')
Note that it puts in precisely two extra spaces for each line in the tangled `body`, which is the amount used in the block named `function` where it references `body`. If you used 4 spaces of indentation, it would use 4 in the tangled output. I've also used noweb and don't recall this being an issue, however that was not with Python so it's possible I just didn't notice a problem with it.
