It's in the Type menu...
BUT, outlining type for anything other than creating some sort of special effect is considered poor practice for a variety of reasons, including loss of editability, searchability, and loss of embellishments like automatic bullets and numbers, underlines, and paragraph rules that only work with actual text. If you feel you must outline text, and you are using CS2, see InDesignSecrets » Blog Archive » Converting Text to Outlines The Right Way
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