Below is my tsconfig.json file where I have set target to es5 and module to es6
{
"compilerOptions": {
To supplement the previous answer, in 2020 there are 4 TS config options that define the module resolution and compilation output:
module.target.lib.moduleResolution.The first 3 affect your output, while the latter affects the way the compiler searches for your modules to resolve them and bundle.
Here's a great and concise article about these options: Typescript confusion: tsconfig.json module, moduleResolution, target & lib explained | by Tom Medema | Medium.
Additionally, a doc about module resolution: TypeScript: Handbook - Module Resolution.