Wrap and indent text using coreutils

With gnu awk you can do something simple like this:

awk -F '---' '
{ gsub(/.{50,60} /,"&\n           ",$2)
  printf "%-10s %s\n", $1, $2 }'

For a more accurate long-winded version handling long words:

awk -F '---' '
{ printf "%-10s ", $1
  n = split($2,x," ")
  len = 11
  for(i=1;i<=n;i++){
   if(len+length(x[i])>=80){printf "\n           "; len = 11}
   printf "%s ",x[i]
   len += 1+length(x[i])
  }
  printf "\n"
}'

After the fold command pipe the output to sed and replace the start of line with a tab. And you can control the indent with with the 'tabs ' command prior:

tabs 5
echo "A very long line that I want to fold on the word boundary and indent as well" | fold -s -w 20  | sed -e "s|^|\t|g"

     A very long line
     that I want to fold
     on the word
     boundary and indent
     as well

Here's a shorter answer that uses fold then shifts its output by 11 spaces. To see what it is doing add a -v or -x to the final bash.

| sed 's:\(.*\)---\(.*\):printf "%-10s " "\1";fold -w '$(($COLUMNS - 11))' -s <<\\!|sed "1!s/^/           /"\n\2\n!\n:' | bash