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I can't work out how they've distorted the text in this specific way, can anyone help?
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I would say it's an Illustrator project. In fact, you list Illustrator CS6 as one of your tags. It's not appropriate for InDesign.
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I agree with Steve. Not that it couldn’t be done in InDesign, but Illustrator makes more sense.
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Illustrator has stronger tools for modifying and distorting vector shapes than InDesign has.
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Agreed, Steve.
Envelope Distort, Appearances, Make with Warp, etc. are all features that make Illustrator the way to go. Plus, when you add the power of the Astute Graphics plug-ins, Illustrator runs laps around InDesign for this kind of job.