When exporting files for commercial printing from Photoshop, I was always told to save as TIFF files and place them in InDesign documents when sending files to a commercial printer. When exporting from Illustrator, I was always told to save as EPS files to be placed in InDesign. Lately I am seeing articles stating that you can place high resolution JPEGs, native PSD files, or native Illustrator files into InDesign. Which file format is correct?
From AI you should save as AI or PDF and place in InDesign.
From Photoshop for anything with vector information such as text, save as Photoshop PDF. For other graphics, save as PSD.
There is nothing inherently wrong with JPG. Feel free to use it if the resolution is suitable for the job.