I tried using 'Paste Into' but it won't highlight.
The original thread question was how ID positions an object when you use Paste Into, not whether it works. So if Paste Into is grayed out it sounds like you have a different question. For Paste Into to be available you have to have a graphic frame (not a graphic or image) selected, and there needs to be a graphic object (not text) on the clipboard.
To select a graphic object or image you use the Direct Select tool (white arrow), to select its frame you use the Selection tool (black arrow)