This question really has nothing to do with Acrobat Printing & Prepress issues, but rather, PDF export from InDesign.
Moving this topic to the InDesign forum.
You are not going to believe what I found in your PSD file!
The file you posted was 4.62 megabytes in size. The reality is that over 4 megabytes of that file was XMP metadata that recorded the history of file edits made on that image.
I eliminated virtually all that useless metadata, losslessly maintaining all the original image data, and the resultant .PSD file is only 267 kilobytes!!!
(There is no built-in tool for clearing the metadata in Photoshop, but if you losslessly save the .PSD file as a .PDF file that can be re-edited in Photoshop, you can use the Save as Optimized PDF function in Acrobat Pro to strip away the metadata - don't resample or remove anything else! I opened the resultant PDF file in Photoshop and resaved as a .PSD file.)
Try the attached .PSD file and see if that solves your problem a little bit. Let us know if that helps!
Yep. removing the metadata solved the problem. PDF size went from 27MB to 5MB. it seems they included the whole history log in the logo which is unnecessary for us. Strange that when you make a PDF, the PSD metadata has such an impact on the PDF filesize.
Thanks for the help.