You might just be better of using while loops rather than for loops for this. I translated your code directly from the java code.
str1 = "ababa"
str2 = "aba"
i = 0
while i < len(str1):
j = 0
while j < len(str2):
if not str1[i+j] == str1[j]:
break
if j == (len(str2) -1):
i += len(str2)
j+=1
i+=1