What is the purpose of the tsconfig.json file? code example

Example: tsconfig.json basic configuration

{
    "compilerOptions": {
        "target": "es5",
        "module": "commonjs",
        "outDir": "public/js"
        "rootDir": "src",
        "strict": true,
        "esModuleInterop": true
        "forceConsistentCasingInFileNames": true
    },
    "include": ["src"]
}