I used something like this:
display_template {<div style="text-indent: @folder_tree.level@em;">@folder_tree.label@</div>}
You could adjust the amount of the indent in the code block of the db_multirow.
You just need to use a tree query in oracle or pg to calculate the level relative to the project manager root folder I think.
Looking at some code on PG if you call tree_level() on the tree sortkey of the folder, and then tree_level() on each items tree sortkey, you can subject those to get the relative level of the items. I suspect you can do something similar with oracle, I think if you start with the folder as parent_id, oracle calculates the level for you.