Import issue for 'formidable' using Jest, and NextJS 12

I'm using NextJS 12 and trying to test API Routes using Jest. When I try to do test I'm having issues with formidable which states:

   ({"Object.<anonymous>":function(module,exports,require,__dirname,__filename,jest){import PersistentFile from './PersistentFile.js';
                                                                                      ^^^^^^

    SyntaxError: Cannot use import statement outside a module

This is my jest.config.js

/** @type {import('ts-jest/dist/types').InitialOptionsTsJest} */
module.exports = {
  setupFilesAfterEnv: ['<rootDir>/jest.setup.ts'],
  testPathIgnorePatterns: ['<rootDir>/.next/', '<rootDir>/node_modules/', "node_modules/(?!variables/.*)"],
  moduleNameMapper: {
    '\\.(scss|sass|css)$': 'identity-obj-proxy',
  },
  moduleNameMapper: {
    // Handle module aliases (this will be automatically configured for you soon)
    '^modules/(.*)$': '<rootDir>/modules/$1'
  },
  preset: 'ts-jest',
  testEnvironment: 'node',
  transform: {}
};

I'm confused about how Typescript and Jest work in the latest NextJS 12. I usually use it in backend Nodejs commonjs