We study color confinement properties of the multi-instanton system, which seems to carry an essence of the nonperturbative QCD vacuum. Here we assume that the multi-instanton system is characterized by the infrared suppression of instantons as $f(rho)sim rho^{-5}$ for large size $rho$. We first investigate a monopole-clustering appearing in the maximally abelian (MA) gauge by considering the correspondence between instantons and monopoles. In order to clarify the infrared monopole properties, we make the ``block-spin transformation for monopole currents. The feature of monopole trajectories changes drastically with the instanton density. At a high instanton density, there appears one very long and highly complicated monopole loop covering the entire physical vacuum. Such a global network of long-monopole loops resembles the lattice QCD result in the MA gauge. Second, we observe that the SU(2) Wilson loop obeys an area law and the static quark potential is approximately proportional to the distance $R$ between quark and anti-quark in the multi-instanton system using the SU(2) lattice with a total volume of $V=(10 fm)^4$ and a lattice spacing of $a=0.05 fm$. We extract the string tension from the $5 times 10^{6}$ measurements of Wilson loops. With an instanton density of $(N/V)=(1/fm)^4$ and a average instanton size of $bar{rho}=0.4 fm$, the multi-instanton system provides the string tension of about $0.4 GeV/fm$.