Making static entities collide with player

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You mean checking the "static physics" box on every entity?

No, static objects are not entities. Static objects consist only of .dae files. Collision detection for static objects is based on the faces of each mesh, and do not rely on bodies. So, if you're just looking for objects without any interactive properties but that can get in the way of the player, then you go with static objects. The .dae file of the entity is normally located in the same folder as the .ent file. In the level editor, simply place down a static object, select it and on the right panel, click on "..." and open the .dae file. You may also want to change the static object name to reflect the object, in the level editor.