Congrats on your adorable new baby!
The cage you have him in now I would say is too small for the long run. It works as a baby cage, but eventually you should move him up into something bigger. A standard flight cage is the minimum size I'd keep a lorikeet or similar sized bird in. They just have so much energy and while you say he'll be out most of the time, you just never know how the future will play out. A time may come when he has to be caged longer than usual and a small cage just won't do.
Just to give you an example of a flight cage: http://www.hayneedle.com/product/hqwroughtironflightcage.cfm?ltype=child&tid=ALLB001-3
The cage you have him in now I would say is too small for the long run. It works as a baby cage, but eventually you should move him up into something bigger. A standard flight cage is the minimum size I'd keep a lorikeet or similar sized bird in. They just have so much energy and while you say he'll be out most of the time, you just never know how the future will play out. A time may come when he has to be caged longer than usual and a small cage just won't do.
Just to give you an example of a flight cage: http://www.hayneedle.com/product/hqwroughtironflightcage.cfm?ltype=child&tid=ALLB001-3
we just felt it's too big for him right now, and since we're taking him house sitting for 5 weeks it would be really difficult/impossible to get the big cage in my little hatchback. I just couldn't stand him being in the budgie cage when he's growing so quickly! God knows how the breeder thought he could live in a cardboard box for two weeks :/