Tickets to Padang will go on sale Tuesday with a promotional one-way fare of 4.98 Singapore dollars (US$3.05; euro2.31), the airline said in a statement.
Tiger Airways said it would fly three times a week to the West Sumatran city.
''We have the ability, we have the planes, we have potential customers all ready to experience what would be one of the lowest if not the lowest fares offered by any airline to Indonesia,'' said Tiger Airways Chief Executive Tony Davis in the statement.
He also said they have applied for rights to fly to the Indonesian capital of Jakarta and Medan in Sumatra, but did not provide further details.
Three budget airlines - Valuair, Tiger Airways, and Qantas-backed Jetstar Asia - are based in Singapore. The city-state is building Asia's first terminal catering to discount carriers, expected to be completed in early 2006.
Singapore Airlines Ltd. is majority-owned by Temasek Holdings, the city-state's investment arm.
