Version: 2.0.2 (using KDE 3.5.10) Compiler: gcc-4.2.4 OS: Linux Installed from: Gentoo Packages Like the title says, Kile drops its indentation when starting a new line because of static word wrap. For example, normally I might have indentation like: \begin{proof} One long line of the proof-> wraps onto the next visual line. \end{proof} where -> means the line wrapped. But with static word wrap, it comes out \begin{proof} First static-wrapped line Second static-wrapped line. \end{proof} The second line (and subsequent ones) lose the initial space. This breaks the visual structure of the document.
Already known issue, see bug #135737. Not fixed yet, unfortunately. *** This bug has been marked as a duplicate of bug 135737 ***